Toronto-listed SOL Strategies (HODL) announced on Tuesday it acquired over $18 million worth of SOL tokens. The firm used proceeds from a newly secured financing deal to purchase 122,524 SOL at an average price of $148.96 per token, according to a press release.
This acquisition follows the initial $20 million closing of a planned $500 million convertible note facility with investment firm ATW Partners, announced last month. Despite this strategic move, shares of the company slid 10% to around CA$2.6 in the early Tuesday hours.
However, the stock is still up nearly 80% in two weeks, reflecting a focus on expanding validator operations and SOL holdings. CEO Leah Wald stated the acquisition directly strengthens their strategy of enterprise-grade validators, strategic SOL holdings, and Solana technology innovation.
Validator operations are crucial for securing proof-of-stake blockchains like Solana. By increasing its validator stake, SOL Strategies aims to boost influence and revenue within the ecosystem.
This move highlights a trend of public companies accumulating cryptocurrency holdings, similar to Michael Saylor's Strategy with Bitcoin. Last month, Janover (JNVR), now DeFi Development, also pivoted to focusing on accumulating SOL and building a validator business on Solana.
This article is based on our author's analysis of materials taken from the following resource: CoinDesk.