SOL Strategies has announced a ground breaking $500 million convertible note facility
with New York-based ATW Partners to enhance its position in the Solana ecosystem.
The funds will be allocated to acquiring SOL tokens, which will be staked directly via validators operated by SOL Strategies. The initial $20 million tranche is expected to close around May 1, 2025, with more to follow.
Yield-Based Interest Model Powers Sustainability
This innovative facility stands out due to its interest mechanism. The interest will be paid in SOL, capped at 85% of the staking yield, effectively tying repayment to validator performance.
CEO Leah Wald described it as the first and largest yield-tied financing structure within Solana’s ecosystem. “It’s scalable and immediately accretive,” she stated.
The convertible note structure includes an equity conversion option at market prices, offering ATW potential upside while aligning incentives. Cohen & Company Capital Markets serves as placement agent, earning a 4% fee.
Validator Strategy Expands with NFT Partners
The capital injection aligns with SOL Strategies’ aggressive validator expansion, including a March acquisition of three Solana validators and Stakewiz.com in a $24 million deal.
Most recently, SOL Strategies teamed up with Pudgy Penguins to launch the PENGU Validator, offering yields of 7–11% via Phantom. The move marks Pudgy Penguins’ expansion into infrastructure and brings NFT-driven engagement to staking.
Laine’s founder, Michael Hubbard, now CSO at SOL Strategies, is overseeing validator performance, which reached 99.955% uptime and 7.41% APY in March.
Governance and Deflationary Alignment
SOL Strategies supported SIMD-228, a proposal to reduce Solana’s inflation, signaling its commitment to long-term ecosystem sustainability.
The firm’s convertible note strategy also draws comparisons to GameStop and MicroStrategy, though with a twist: SOL Strategies leverages capital for yield, not just treasury.
With institutional-grade tools and a performance-first mindset, SOL Strategies is redefining crypto-native capital deployment.
