Solana has experienced a dip in its native cryptocurrency token, $SOL, recently, and institutions are seizing the opportunity by buying the dip. Toronto-based SOL Strategies Inc. announced on the social media platform X (formerly known as Twitter) that the company has purchased 122,524 SOL at an average price of $148.96 and has deployed the full $20 million from its recently closed ATW Partners convertible note facility.
SOL Strategies’ $500M Funding
This investment is the first part of a huge $500 million funding deal for the Solana ecosystem. This move is a big vote of confidence in Solana’s technology, its growing infrastructure, and the people validating transactions on the network.
CEO Leah Wald emphasized that the company will use the invested money to buy and support Solana through their advanced validators, backing their three main goals: strong validation, smart SOL investments, and innovating Solana technology.
“With the closing of our initial $20 million tranche from the ATW facility, we’re executing exactly as promised – strategically acquiring SOL to expand our validator operations and ecosystem position. These purchases directly strengthen our three-pillar strategy of enterprise grade validators, strategic SOL holdings, and Solana technology innovation.”- CEO Leah Wald
The new innovating financing model has been designed to link staking yield directly to the debt agreements, with noteholders receiving returns in SOL tokens. This return has been capped at 85% of staking rewards. With this, it can be ensured that the capital deployed is immediately productive, generating yield that funds interest payments and solidifies SOL Strategies’ balance sheet. This strategy is also in line with the health and growth of the Solana network.
Institutional Players Buying the Dip
The recent purchase by SOL Strategies indicates a trend. Whenever the crypto market experiences volatility and the prices of the tokens dip, institutional investors start capitalizing on the discounted price to build their portfolios. Solana’s ecosystem and its functionality has made it an attractive option for such strategic accumulation.
At press time, the price of the token stands at $142.58 with a dip of 1.1% in the last 24 hours as per CoinGecko.
With the initial $20 million invested in and more than $480 million still available for the institution to buy more SOL tokens, the company, SOL Strategies, is set to scale its validator business and solidify its role as an important institutional player in the Solana ecosystem.
The company is also said to be eying a potential Nasdaq listing. Such huge purchases help the company improve its financial standing and credibility. This will ultimately help the company to support its goal of a Nasdaq listing.
Also Read: Two Ancient Bitcoin Wallets Awaken, Move $324M in Mysterious Shift
