Toronto-listed digital asset firm SOL Strategies (HODL) has acquired over $18 million worth of SOL tokens as it looks to expand its validator operations. As reported by CoinDesk, the company has purchased 122,524 SOL for $18.25 million at an average price of $148.96 per token. The purchase was made using the company’s recently closed $500 million convertible note facility with ATW Partners.
“With the closing of our initial $20 million tranche from the ATW facility, we’re executing exactly as promised – strategically acquiring SOL to expand our validator operations and ecosystem position,” said Leah Wald, Chief Executive Officer of SOL Strategies in a press release.
By acquiring SOL, the firm can increase its validator stake, potentially boosting both influence and revenue within the ecosystem. Validator operations are core infrastructure in proof-of-stake blockchains. According to a CoinDesk report, SOL Strategies bought three validator businesses last month, bringing the total amount of SOL staked at the firm’s validators to 3,351,617 SOL, or over $500 million.
ATW Partners and SOL Strategies had decided that the interest on the convertible notes would be paid out in SOL, calculated as up to 85% of the staking yield on SOL staked with the firm’s validators.
Meanwhile, SOL stablecoin market capitalization has hit $13 billion marking an all-time-high. Stablecoins have become an integral part of Solana’s decentralized finance (DeFi) ecosystem, increasing SOL demand in the recent past.
SOL Strategies Inc. is a Canadian investment company that operates at the forefront of blockchain innovation. Specializing in the Solana ecosystem, the company provides strategic investments and infrastructure solutions to enable the next generation of decentralized applications. Solana combines the Proof-of-History (PoH) consensus mechanism alongside the more common Proof-of-Stake.