Sol Strategies Plans to Raise $1B to Expand $SOL Holdings

Sol Strategies Inc. (CSE: HODL), a company focused on the growth and development of the Solana blockchain filed a preliminary short-form base shelf prospectus with Canadian securities regulators. The filing enables Sol Strategies to issue up to $1 billion in securities over the next 25 months to capitalize on emerging opportunities within the rapidly evolving Solana ecosystem.

The prospectus permits the issuance of various securities, including common shares, warrants, subscription receipts, units, debt securities, or a combination of these. While the filing does not commit Sol Strategies to immediately raise funds, it prepares the company to act swiftly when attractive investment prospects arise.

“The filing of a base shelf prospectus supports our growth strategy by providing us with the flexibility to access capital as future opportunities arise in the rapidly evolving Solana ecosystem,” said Leah Wald, CEO of SOL Strategies. “This strategic move enhances our ability to act decisively when compelling investment opportunities present themselves.

What Does the Shelf Prospectus Mean for Sol Strategies?

A base shelf prospectus is a regulatory tool that allows a company to offer securities over time without filing a new prospectus for each issuance. It streamlines capital-raising efforts, enabling Sol Strategies to respond quickly to market opportunities. The final terms, including pricing and specific amounts, will be determined in future prospectus supplements, once the preliminary filing gains regulatory approval.

By securing this shelf prospectus, Sol Strategies lays the groundwork for long-term expansion. The company gains the ability to raise capital in a variety of ways, including equity and debt instruments, allowing it to tailor fundraising efforts to market conditions and strategic priorities.

From Passive Investor to Active Solana Ecosystem Participant

Sol Strategies is shifting from passive investment toward a more active role in the blockchain’s infrastructure. This transition is evident in its recent $500 million convertible note facility agreement with New York-based ATW Partners.

The facility is designed exclusively to purchase SOL tokens. These tokens will be staked on Sol Strategies’ own validators, creating a direct connection between the company’s capital and Solana’s staking economy. The first tranche of $20 million was expected to close around May 1. Interest payments on the notes are paid in SOL and linked to staking performance, capped at 85% of the staking yield, aligning incentives for both parties.

The convertible notes also offer ATW Partners the option to convert debt into equity, which provides upside potential while maintaining aligned interests. Cohen & Company Capital Markets serves as the placement agent, receiving a 4% fee for its services.

Moreover, Sol Strategies recently signed a non-binding memorandum of understanding (MOU) with blockchain infrastructure company Superstate in late April. The partnership explores the possibility of issuing tokenized equity on the Solana blockchain.

If successful, this initiative would be among the first to bring regulated public company shares on-chain, marking a milestone in integrating traditional finance with decentralized technology. Superstate’s “Opening Bell” platform is slated to provide real-time settlement and DeFi interoperability for these tokenized shares.

Positive Market Impact and Growing Adoption

Following the announcement of the shelf prospectus, Solana’s native token price saw an uptick, reaching approximately $178 — a 2.5% increase. This rise was partly fueled by the launch of MetaMask’s native support for Solana, allowing users to manage SOL and Ethereum assets via a single interface.

The update to MetaMask’s desktop extension enables users to create or import Solana accounts, view token balances, interact with Solana decentralized applications (dApps), and even purchase SOL tokens directly through the platform. Additionally, it offers cross-chain bridging between Ethereum and Solana networks without requiring multiple wallets. These improvements simplify the user experience and may encourage greater adoption of Solana.

Around the same time, industry reports noted that Sol Strategies, in partnership with DeFi Dev Corp, accumulated more than 200,000 SOL tokens, valued at around $29.4 million. 

Market analysts are optimistic about Solana’s long-term price potential. Standard Chartered forecasts SOL could reach $275 by the end of 2025, up from current levels near $177.35. Further out, the bank projects the token might climb as high as $500 by 2029, indicating strong growth prospects over the next five years.

Despite this bullish outlook, Standard Chartered expects Solana to underperform Ethereum over the medium term. The bank predicts the Ethereum-to-Solana price ratio will rise from 14 to 17 by the end of 2027 before potentially declining. This suggests Solana will grow but not at the same pace as Ethereum in the near future.