Sol Strategies Secures CAD $27.5 Million from ParaFi Capital to Strengthen Solana Validator Infrastructure

Toronto-based publicly traded firm Sol Strategies Inc. (CSE: HODL, OTC Pink: CYFRF) has closed a major capital raise with ParaFi Capital, a prominent blockchain investment firm, pledging the full CAD $27.5 million commitment. This strategic funding round marks a significant vote of confidence in the company’s mission to build critical infrastructure across the Solana ecosystem.

Funding Structure and Investment Terms

The private placement will be structured through unsecured convertible debenture units, with each CD Unit featuring a CAD $1,000 principal debenture paired with 400 warrants. Key terms include a 2.5% annual interest rate (payable semi-annually in cash or company shares), conversion rights at CAD $2.50 per share, and five-year warrant exercise periods. Investors can redeem debentures at 112% of principal value after three years, with a four-month trading restriction on issued shares.

Expected closing is set for mid-January 2025, subject to standard regulatory conditions.

Deploying Capital for Growth

Sol Strategies plans to deploy proceeds across three strategic areas: expanding its SOL treasury holdings, scaling both organic and inorganic validator operations, and supporting general working capital needs. The company’s validator services represent a revenue-generating pillar, with this fresh capital enabling best-in-class infrastructure deployment.

CEO Leah Wald emphasized the significance of this partnership, stating the financing positions Sol Strategies to cement its leadership position within the Solana ecosystem while leveraging staking rewards to build sustainable shareholder value.

ParaFi Capital’s Strategic Rationale

ParaFi Capital’s Managing Director Ryan Navi highlighted the investment thesis, noting that ParaFi’s capital will empower Sol Strategies to operate institutional-grade validator services and implement comprehensive SOL treasury strategies. The firm views this backing as unlocking new operational opportunities and revenue streams for Sol Strategies, contributing to broader Solana network support.

Founded in 2018, ParaFi Capital operates hedge fund and venture capital strategies across the digital asset landscape, positioning itself as an institutional partner with deep crypto-native expertise and substantial capital resources.

About Sol Strategies

Sol Strategies is a Toronto-headquartered public company focused on infrastructure development and strategic investments within the Solana blockchain ecosystem. The firm enables shareholders to gain indirect exposure to decentralized finance opportunities through staking rewards and ecosystem-focused projects. Listed on the Canadian Securities Exchange and OTC markets, Sol Strategies continues positioning itself as a key infrastructure player in one of crypto’s most active layer-one networks.