On May 1, 2025, Sol Strategies Inc. (“Sol Strategies”), a publicly-traded Canadian company actively investing in and providing infrastructure for the Solana blockchain, completed its initial USD $20 million closing of its up to USD $500 million convertible note facility (the “Facility”) with an affiliate of ATW Partners Opportunities Management, LLC.
Pursuant to the Facility, Sol Strategies issued convertible notes ("Notes") in the aggregate principal amount of USD $20 million as its first tranche, with additional capacity of up to USD $480 million available in subsequent drawdowns, subject to certain conditions. In this novel structure, interest on the Notes will be paid in SOL, calculated as up to 85% of the staking yield generated by SOL acquired through the facility and staked by SOL Strategies.
The Notes will be convertible into common shares of Sol Strategies at the prevailing market price on the date prior to conversion, subject to the terms and conditions of the Notes and the Facility, with proceeds being deployed to purchase SOL tokens to be staked on the Company's validators.
Fasken advised Sol Strategies in connection with this financing with a team that included Daniel Fuke, Nazish Mirza and Irene Lai.
Jurisdiction
- Ontario
