Canadian publicly traded company SOL Strategies Inc. announced on April 23, 2025, that it had signed an independent agreement with ATW Partners on the same day to establish a convertible note financing mechanism of up to $5 billion. The funding will be specifically used to purchase SOL tokens, which will be staked through validation nodes operated directly by SOL Strategies, with the resulting rewards shared by both parties.
According to the company's disclosed financing mechanism, the initial issuance will be a total principal amount of $20 million in convertible notes, with the possibility of accessing up to $4.8 billion in tranches based on specific conditions. The first settlement is expected to take place around May 1, 2025, with the exact timing subject to standard settlement conditions. Under this innovative structure, note interest will be paid in SOL tokens, calculated as 85% of the staking rewards generated by SOL tokens purchased through this mechanism and staked by SOL Strategies.
