Sol Strategies Announces Intent to Acquire Blockchain Validators in Latest Financial Update

Sol Strategies Inc. announced on October 25 that it had signed a non-binding letter of intent to acquire four blockchain validators from an independent party.

According to a press release issued by Sol Strategies, the proposed transaction involves a combination of $1 million in cash and up to $6.5 million in common shares, with the latter being issued over a three-year period contingent on performance targets.

Proposal to Acquire Four Blockchain Validators

The proposed acquisition involves a total consideration of approximately CAD $10.38 million, split between cash payments and shares of Sol Strategies.

The transaction includes an initial payment of CAD $1.38 million in cash and an equivalent value in common shares at closing. Based on specific performance conditions, an additional CAD $7.61 million in shares is planned to be issued over a three-year period.

Breaking: @solstrategies_ announces letter of intent to spin up 4 more @solana validators bringing total to 5.

This is the most exciting thing in crypto IMO.

(i) CAD $1,384,500 (USD $1,000,000) of cash, payable on closing
(ii) CAD $1,384,500 (USD $1,000,000) of Sol Strategies… pic.twitter.com/aV9C4vD658

— MartyParty (@martypartymusic) October 25, 2024

Completion of the deal depends on meeting certain conditions, including finalizing a definitive agreement with the vendor and securing necessary regulatory approvals. Sol Strategies emphasized that no finder’s fees are involved in this transaction.

The acquisition remains subject to a definitive agreement, regulatory approval, and other customary conditions.

Sol Strategies’ Latest Financial Activities

In addition to the proposed acquisition, Sol Strategies provided an update on its financial activities.

The company recently drew down $2 million from its loan facility, using the funds to acquire additional Solana (SOL) through Coinbase Prime. This acquisition increased the company’s total SOL holdings used in its validator operations.

The company’s SOL holdings have risen to 117,619.10, up from the 105,249.82 SOL reported earlier this month. The increase includes newly purchased SOL and rewards earned from staking activities.

Sol Strategies also reported selling 8.57 Bitcoin for gross proceeds of approximately CAD $788,000. The company now holds 47.67 Bitcoin, valued at around CAD $4.5 million, as part of its digital asset portfolio.