Canadian holding company Sol Strategies Inc. (CSE: HODL), formerly known as Cypherpunk Holdings Inc., has finalized an amended CAD $25 million credit facility with its Chairman and Director, Antanas Guoga. The funds are intended exclusively for Solana token acquisitions to bolster the company’s staking and blockchain ecosystem operations.
Sol Strategies Announces Significant Solana Acquisition Plan
The credit facility, effective January 6, 2025, revises a previous agreement from October 2024. It offers a revolving, unsecured loan with a 5% annual interest rate. The principal and interest are due by January 6, 2027, but the lender retains the right to demand repayment at any time.
Sol Strategies has already accessed CAD $4 million and plans to deploy the remaining funds for large-scale investments in Solana-related ventures, including decentralized finance (DeFi) projects, validator operations, and liquidity support for emerging initiatives.
“This significant capital injection reflects our unwavering confidence in Solana’s ecosystem and our strategy for long-term value creation,” stated Leah Wald, CEO of Sol Strategies. She also emphasized that the credit arrangement offered favorable terms compared to alternative financing options.
Antanas Guoga, the lender, expressed strong optimism about Solana and the company’s direction. “I believe deeply in the potential of both Solana and Sol Strategies’ corporate vision,” he said in a statement.
The credit facility qualifies as a related-party transaction under Multilateral Instrument 61-101 due to Guoga’s roles as both lender and director. Sol Strategies relied on exemptions for valuation and shareholder approval, citing the transaction’s alignment with market norms.
The company justified its decision to proceed without a 21-day notice for a material change report, pointing to the urgency of accessing funds. This move positions Sol Strategies as a significant investor in the Solana blockchain.
Also Read: Solana Hits $100 Billion Market Cap Amid Growing Interest
