SOL Strategies plans to buy more Solana with $1 billion

SOL Strategies, a publicly traded Solana infrastructure company, has announced plans to raise $1 billion. The firm disclosed today that it has filed a preliminary prospectus with regulators to disclose its intention.

According to the announcement, the company filed the prospectus with securities regulators in all the Canadian provinces and territories. This is only a first step, as regulators will only approve once they have received and acknowledged the final base shelf prospectus.

Based on the prospectus, SOL Strategies wants to issue up to $1 billion in securities over the next 25 months. The company noted that it can do so through common shares, warrants, debt securities, units, or subscription receipts.

However, it noted that there is no final decision yet on whether it wants to issue these securities, and it only filed the preliminary prospectus to improve its flexibility if it decides to go ahead with the plan later.

The announcement reads:

“The Company has filed this Preliminary Shelf Prospectus to increase its financial flexibility going forward. SOL Strategies currently has no immediate plans to issue any securities under it and may never proceed with any such issuance.”

SOL Strategies added if it decides to offer the securities, its final base shelf prospectus would contain all the terms and how it intends to use the proceeds of the raised funds.

The company CEO, Leah Wald, also confirmed this, noting that the filing aligns with its growth strategy and allows it to access capital for any opportunity within the Solana ecosystem.

SOL Strategies remains bullish on Solana

Meanwhile, SOL Strategies’ plan reflects its bullishness on SOL. The company, formerly Cypherpunk Holdings, recently bought 122,524 SOL for $18.25 million using the initial $20 million of its $500 million convertible note facility. With that acquisition, its total holdings increased to 349,322 SOL.

Beyond acquiring SOL, the company also offers enterprise-grade Solana validator services, allowing it to stake SOL for several companies. According to the firm, it has around 3.5 million SOL delegated to its validators, with more than 5,500 wallets controlled by different corporate institutions staking with it.

Due to its staking services, it has also invested heavily in security and compliance. It recently completed SOC 2 Type 1 and SOC 1 Type 1 audits for its staking platform while getting an ISO 27001 certification. The certifications confirm the company’s cybersecurity and compliance standards.

Interestingly, the company has also announced plans to bring tokenized shares of its stock to Solana. In a post earlier this month, SOL Strategies stated that it is working to become the first public company to have registered shares on Solana through the Superstate Opening Bell platform.

SOL Treasury adoption is growing

The $1 billion plan by SOL Strategies highlights the trend of SOL treasury adoption by public companies copying Strategy’s (formerly MicroStrategy) approach with Bitcoin.

Over the past month, two US-based public companies have adopted SOL. These include Nasdaq-listed real estate company Janover, which recently changed its name to DeFi Development Corp.

The firm now holds 251,842 SOL after spending $11.5 million to buy 88,164 SOL in April, and it is also planning to operate a staking service on Solana. Interestingly, the company filed a registration statement to raise $1 billion through securities offering and spend the proceeds on SOL.

While a real estate firm pivoting to Solana acquisition and staking might seem strange, it is not without explanation. A group of former executives of the crypto exchange Kraken recently took a majority stake in the company.

Meanwhile, another Nasdaq-listed firm, Upexi, announced last month that it had raised $100 million to buy SOL and create a Solana treasury. At the same time, Japanese firm Remixpoint also holds SOL as a treasury asset.

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