Sol Strategies Makes Play to Become the Microstrategy of Solana

A Canadian holding company moves to purchase $25M CAD of $SOL.

Published: Jan 8, 2025 at 11:32

Sol Strategies, a publicly traded holding company, has reaffirmed its conviction in the Solana ecosystem, announcing its intention to make a strategic investment worth $25M in Solana tokens.

Adding to its existing $SOL holdings, Sol Strategies has indicated that purchased tokens will be allocated across the company’s core focus areas with the ecosystem.

The strategic investment reinforces Sol Strategies' growing role in the network after the company acquired Orangefin Ventures validators in December 2024.

Solana’s Version of Microstrategy

On January 7, 2025, Sol Strategies announced it had drawn from its credit facility agreement with Chairman Antanas Guoga, essentially freeing up $25M CAD to fund continued investment in the Solana ecosystem. Guoga’s loan to the company bears a 5% per annum interest rate.

[https://x.com/solstrategies_/status/1876680774055055698]

"I'm making this capital available to Sol Strategies because of how deeply I believe in both the corporate strategies and Solana itself" - Antanas Guoga, Sol Strategies Chairman.

Upon purchase, Sol Strategies will use the newly acquired $SOL to support its staking operations. Additionally, the company has announced its intention to deploy these assets across key focus areas within the ecosystem, including undisclosed DeFi positions and liquidity provision to support emerging Solana projects.

Sol Strategies CEO Leah Ward asserts this investment will benefit company shareholders, who gain increased exposure to the Solana ecosystem and the value appreciation of its native assets.

"After evaluating multiple financing options for this strategic investment, we determined that the terms offered through this facility provided the most favorable structure for our shareholders. Our staking strategy is tremendously successful, and we are confident that our expanded position in Solana will generate substantial returns for our shareholders while supporting the continued growth of the Solana ecosystem." - Leah Ward, Sol Strategies CEO

Sol Strategies’ investment behavior is reminiscent of Microstrategy’s relentless Bitcoin strategy, with the company’s supporters calling Sol Strategies an “MSTR for Solana Bulls”.

HODL CSE

Despite investor optimism, Sol Strategies stock (HODL) dipped following the announcement, currently down -4.01% on a daily time frame based on TradingView data.

Sol Strategies Acquires Solana Validator

Sol Strategies’ latest strategic investment continues the company’s involvement in the Solana ecosystem. In December 2024, the company announced its acquisition of Orangefin, a popular Solana Validator operator.

As part of the acquisition, Sol Strategies onboarded former Kraken engineer Max Kaplan as its new Head of Staking. At press time, Sol Strategies’ and Orangefin Ventures’ collective validator operations boast over 883k staked $SOL, currently valued at $174M USD based on Solana Compass data.