Sol Strategies announces CAD $27.5 million private placement backed by ParaFi Capital, focusing on SOL token accumulation and validator infrastructure growth.
Sol Strategies Inc. has announced a CAD $27.5 million private placement fully funded by ParaFi Capital. The Canadian-based company outlined its plans for the funds, which include accumulating more SOL tokens, expanding its validator operations, and covering other business expenses.
The team explained that the CAD $27.5 million private placement involves convertible debenture units, each consisting of a CAD $1,000 debenture and 400 warrants. According to the press release, the debentures carry a 2.5% annual interest rate, payable semi-annually in cash or shares, and can be converted into company shares at CAD $2.50 each.
Sol Strategies Inc. further noted that the warrants allow holders to purchase a single share of the company at a rate of CAD $2.50 per share within five years. After three years, the debentures can be redeemed for 112% of their value plus interest. Shares from conversions or warrants will have a four-month trading restriction. The team stated that the deal is expected to close by January 16, 2025, pending standard conditions.
CEO and Partner Statements on the Collaborative Alliance
The CEO of Sol Strategies, Leah Wald, stated that ParaFi Capital’s action demonstrates strong trust in her company’s potential. She added that the funds will help the company continue its growth in the Solana ecosystem and use staking rewards to deliver long-term value for shareholders. Wald also praised ParaFi as an ideal partner due to their crypto expertise and resources. Wald stated:
“This financing, led by ParaFi Capital, underscores strong confidence in the potential of Sol Strategies. It positions the company to strengthen its leadership in the Solana ecosystem, leveraging staking rewards to create long-term, sustainable value for our shareholders. ParaFi is the ideal capital partner given their crypto-native expertise, broad portfolio, and scaled capital base.”
Ryan Navi, Managing Director at ParaFi Capital, expressed enthusiasm for supporting Sol Strategies in building critical infrastructure for the Solana ecosystem. He noted that the investment would enable Sol Strategies to operate top-quality validator services, manage a SOL treasury, and support the Solana network. Navi emphasized that the investment represents a significant step toward creating new opportunities and enhancing shareholder value. Navi noted:
“ParaFi is excited to back the Sol Strategies team in their mission to build critical infrastructure for the Solana ecosystem. ParaFi’s investment will empower Sol Strategies to operate best-in-class validator services, implement a SOL treasury strategy, and support the Solana network. We believe this investment will unlock new opportunities and business lines for Sol Strategies, marking a significant step toward creating greater shareholder value.”
Sol Strategies is listed on the Canadian Securities Exchange under the ticker “HODL” and on the OTC market as “CYFRF.” The company recently finalized its acquisition of three blockchain validators and related assets from Orangefin Ventures, with plans to maintain Orangefin’s high standards while using its resources to expand within the Solana ecosystem.
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