Main Takeaways:
- SOL plans launched with $500 million in funds raised to purchase more Solana tokens.
- The company stock spiked 25% on the day of the launch.
- Nasdaq-listed DeFi Development Corporation also announced Wednesday that it acquired approximately 65,305 SOL, increasing its total to 317,273 SOL.
Strategies, a financial services company on the Canadian Securities Exchange, has raised $500 million through a convertible loan to buy more Solana, increasing the growing interest from big institutions in cryptocurrency.
According to Google Finance data, after the declaration, its shares, trading under the HODL ticker, increased 25.27%, ending Wednesday’s market day at CAD 2.28 ($1.64).
According to the company’s Wednesday announcement, the contract, created with New York-based ATW Partners investment company, is said to be an innovative and the biggest funding arrangement in the Solana ecosystem.
“We are increasing our focus on our belief in Solana and our dedication to being the top platform for institutional staking,” said Leah Wald, CEO of SOL Strategies.
With the funding, the company will release $20 million in notes as the first part. The remaining $480 million is expected to be used later, depending on certain conditions.
In this new setup, the company said that interest on the notes will be paid in SOL. The amount will be based on up to 85% of the earnings made from staking the SOL that was bought using the funding and staked by SOL Strategies.
The Rise of Growing Institutional Interest
The Solana ecosystem has been steadily increasing its presence in crypto, utilising its speed and more affordability than Ethereum to drive a major memecoin trend and a rapidly growing DeFi landscape. SOL has increased 28% in price in the last two weeks; at the reporting time, SOL is trading at $150.2.
The accelerating growth is engaging major investment firms, in addition to individual investor involvement.
SOL Strategies changed its name last year from Cypherpunk Holdings, a company that used to focus on buying bitcoin and crypto-related stocks. Now, it focuses on investing in Solana (SOL). By the end of last month, SOL Strategies owned 267,151 SOL tokens.
Nasdaq-listed DeFi Development Corporation also disclosed on Wednesday that it purchased around 65,305 SOL, reaching a total of 317,273 SOL.
Defi Development said its plan for managing funds is designed to give investors a chance to profit from SOL investments while strengthening its connection with the Solana network, much like how Michael Saylor’s plan focuses on Bitcoin.
Crypto banking services provider Galaxy Digital was seen trading over $100 million in Bitcoin and ETH for an equal amount of SOL in previous weeks through Binance, Lookonchain reported.
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