While the crypto market is buzzing with a wave of meme coins and the recovery of large assets, SOL Strategies – an investment company from Canada – has just made a bold move: raising 500 million USD through a convertible loan to purchase more Solana (SOL), a coin that is favored by many investors and developers for its fast transaction speeds and low costs.



The "massive" loan expands SOL asset holdings


According to the latest announcement from #SOLStrategies , the company has signed an agreement with ATW Partners, an investment firm in New York, to receive a convertible loan worth 500 million USD. This type of loan allows the borrower to convert it into equity or maintain it as debt, depending on the agreed terms.


Notably, the entire amount will be used to buy SOL and stake directly on the company's own validator system. CEO Leah Wald affirmed:



"This is the largest funding ever in the Solana ecosystem and also the first time directly linked to staking profits."




Why is SOL so 'hot'?


Solana is currently the sixth-largest digital asset in the world, with a market capitalization of approximately 77 billion USD. In the past two weeks, the price $SOL has increased over 20%, outperforming Bitcoin in the same period. In the last 24 hours alone, SOL has risen another 5%, trading around 152 USD.


The rise of SOL is partly driven by the resurgence of meme coins, notably Fartcoin – a coin that increased by over 90% in just one month. Investors flock to Solana because this platform handles transactions faster and has lower fees than Ethereum, the leading blockchain in the smart contract space.



Long-term staking strategy


SOL Strategies is currently listed on the Canadian Securities Exchange (CSE) with the stock code HODL. Following the loan announcement, the stock price rose nearly 25% in a day, reaching 2.27 CAD (approximately 1.64 USD).


The company stated that it currently holds 267,151 SOL, equivalent to over 40 million USD. With the new funding, this number is expected to soar, making SOL Strategies one of the largest SOL staking organizations today.


Wald emphasized that the company's long-term goal is to build an institutional-level SOL staking platform – where investors can deposit assets for staking and receive rewards professionally, similar to what MicroStrategy has done with Bitcoin.



Following MicroStrategy's example, but for SOL


The move by SOL Strategies is reminiscent of the debt-raising strategy to buy crypto that MicroStrategy – now renamed Strategy – implemented with Bitcoin. To date, Strategy owns 538,000 BTC, worth nearly 50 billion USD, making it the largest holder of Bitcoin in the world.


Similarly, SOL Strategies positions itself as a pioneer for the 'organization holding and staking SOL' model, leveraging staking profits while benefiting from long-term asset price increases.



Implications for Binance users and the crypto market


The fact that a publicly listed company in Canada is making a large-scale investment in Solana shows increasing confidence in the SOL ecosystem, not just from developers but also institutional investors. This could stimulate more capital flowing into Solana, leading to robust development of decentralized applications (dApps), new tokens, and the NFT market on this platform.


For Binance users, this could be a positive signal if you are interested in staking or investing in SOL – but it is essential to note that high returns always come with high risks, especially in the context of a highly volatile market.



⚠️ Risk warning:


Investing in cryptocurrencies carries many risks, including strong price volatility, liquidity risks, and changes in legal policies. Borrowing to invest in digital assets can amplify profits but also increases financial risks. Carefully consider and only invest when you fully understand the product and have a suitable risk management strategy. Crypto is not for everyone. $BTC