Crypto Firm Using Breakthrough Solana Investment Model for Excellent Growth Potential

1. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
2. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

SOL Strategies Inc. (HODL:CSE; CYFRF:OTCQB) is a Canadian investment company that operates at the forefront of blockchain innovation, specializing in providing strategic investments and solutions for the next generation of decentralized applications.

One of more than 10,000 cryptocurrencies that currently exist, Solana is known for its speed and scalability. It's designed to handle a high volume of transactions efficiently, making it a popular choice for decentralized apps (DApps), DeFi, and NFTs. 

The currency uses a unique "Proof of History" consensus mechanism in addition to Proof of Stake, which helps to ensure fast transaction speeds and a secure network. 

Earlier this month, the company announced closing the initial US$20 million of its up to US$500 million convertible note facility with ATW Partners, with proceeds going to purchase SOL tokens to be staked on the company's validators.

"Staking in Solana involves locking up SOL tokens to help secure the network and validate transactions," the company explains on its website. "Participants earn rewards in SOL based on their staked amount and the performance of the validator they support."

In an investor presentation, the company said it bridges public markets and crypto, offering "direct engagement with the Solana ecosystem."

President and Chief Executive Officer Leah Wald told Streetwise Reports there is plenty of upside left for the cryptocurrency.

"Solana is still a relatively young blockchain with significant development activity," she said. "We believe in its technical capabilities and ecosystem growth, which is why we've built our validator infrastructure around it."

SOL Strategies stockholder Matt Zahab, chief marketing officer and podcast host at Cryptonews, said he go into the stock "back in the day because it was a great proxy exposure play to Bitcoin."

When the company switched its focus to Solana, it changed its name from Cyberpunk Holdings Inc.

"Once the rebrand happened last year . . .  it was just a no-brainer to hold, and then the team just kept executing and doubled down on its vision and had conviction, which is rare and nice, and really just continued to execute.  And here we are today, and the stock's doing pretty darn well," Zahab said.

'The First Solana Miners'

According to report for BankRate by James Royal on March 3, Solana is one of the most popular cryptocurrencies.

"Solana calls itself the fastest blockchain in the world and touts its ability to verify 65,000 transactions per second at a cost of less than a penny each," he wrote. "While many people think of crypto coins as only a currency, it’s useful to think of crypto as a token that can power or enable other apps on the platform. For example, Solana can power smart contracts, decentralized finance apps, NFTs and more."

"Once the rebrand happened last year . . .  it was just a no-brainer to hold . . . here we are today, and the stock's doing pretty darn well," SOL Strategies stockholder Matt Zahab said.

Released in 2020 at less than US$1 per coin, Solana has "risen remarkably fast, reaching US$258 by November 2021 before falling in 2022 and hitting another all-time high of US$294 in January 2025." Its price was US$178 on Thursday.

The staking involved in Solana validates transactions by holding tokens, unlike the signification energy needed by powerful computers to mine Bitcoin. But there are similarities, Wald said.

"I think what's interesting for your gold investors is to look at the fact that for Bitcoin, you have the Bitcoin miners, which are kind of like the gold miners with picks and shovels," she said.

"Then you have the Bitcoin spot ETFs.  So, you have those two options, same as GLD and gold miners, right?  For Solana, we wanted to be the first picks and shovels.  We wanted to be the first Solana miners. "

Trading Shares Directly on the Blockchain

New York-based blockchain company Superstate is looking to take it to the next level for traditional investors by rolling out its Opening Bell platform, which will let companies trade SEC-registered public shares directly on blockchains, according to a report by Nina Bambysheva for Forbes on May 8.

SOL Strategies was the first to sign up, the report said. Pending regulatory approval, its shares will be tradeable on Solana this summer. The company also has applied to list on Nasdaq.

"I recommended MicroStrategy, as it used to be called, to readers back in August 2023, largely because it was a means to get Bitcoin exposure via your broker," Dominic Frisby wrote

Wald, who previously cofounded Valkyrie, a crypto ETF acquired by CoinShares last year, said she was "excited" for the Superstate platform.

"I want to be the first public company to do this," she said. "I think it's the future of capital markets, on the internet . . .  It's the opportunity to have an actual share one-on-one. You get a real share of SOL Strategies rather than just a derivative."

However, Wald said the company is also focusing now on building its validator business.

"That's definitely the engine of the company," she said. "Being able to tokenize could the market our sophistication."

Zahab said he keeps track of the stats and "every single week, Solana's volume surpasses the volume of the literally following 25 (blockchains) combined every week."

According to Crypto.com, the top five cryptos are currently Bitcoin, Etherium, Tether, XRP, and BNB. Bitcoin was more than US$111,000 on Thursday.

"All the real-world stuff that will sort of bridge Web 2 and Web 3 is all happening on Solana," he said. "I think (Solana) could and will pass US$300 and could eventually hit US$354, maybe even the low US$500s. And if that happens, I don't see a world where SOL Strategies doesn't hit CA$10 a share or something like that."

Expert: Corporations Changing How They Store Capital

Dominic Frisby of The Flying Frisbee noted on May 12 that the company's strategy of growing through cryptocurrency investments is being tried by other companies, including MicroStrategy Inc., headed by founder and chairman Michael Saylor.

"I recommended MicroStrategy, as it used to be called, to readers back in August 2023, largely because it was a means to get Bitcoin exposure via your broker," he wrote. "You wouldn't have to jump through all the hoops of buying Bitcoin through exchanges, which the FCA has made so difficult."

Frisby continued, "It has been a big win for readers, having more than 12x'd since we tipped it, outperforming Bitcoin by a considerable margin."

Strategy now has some 555,450 Bitcoin, more than any other publicly traded company in the world excluding ETFs, he said.

"He has turned Strategy from a quiet, business intelligence software firm, which traded sideways for 20 years with a market cap less than US$2 billion, into one of the most talked-about and traded stocks in North America with a market cap north of US$100 billion," Frisby wrote. "Options traders love it."

Frisby then pointed out SOL Strategies is doing a similar thing for Solana.

"What started as a trickle is starting to flow," Frisby said. "The more companies that do this, the bigger the rush is going to get. Corporations are changing the way they store capital. They are changing the capital they store. … This is going to be a big, big theme in the next few years."

US Remains at Forefront of Innovation, Adoption

According to Statista, the projected revenue for the cryptocurrencies market worldwide will reach an estimated US$45.3 billion this year.

The average revenue per user is anticipated to US$52.70 in 2025, and the number of users in the total market is expected to top 861 million this year, as well, Statista noted.

"Despite regulatory challenges, the United States remains at the forefront of cryptocurrency innovation and adoption, with major financial institutions and tech companies leading the way," Statista noted.

"Several growth factors are driving the growth of the cryptocurrency market, including increasing acceptance and adoption of cryptocurrencies by individuals and institutions, growing interest in decentralized finance (DeFi) platforms, and the potential for cryptocurrencies to serve as a hedge against inflation and political instability," the report continued. "Additionally, advancements in blockchain technology and the increasing use of cryptocurrencies for cross-border transactions are also contributing to market growth."

Ownership and Share Structure

According to Refinitiv, about 27% of the company is owned by insiders and management about 1% by institutions. The rest is retail.

Top shareholders include Chairman Antanas Guoga with 21.38%, Chief Strategy Officer Michael Hubbard with 3.16%, Mohammed Adham with 1.6%, Wald with 0.43%, and Creand Wealth Management with 0.42%, Refinitiv said.

Its market cap is CA$637.97 million with 158.15 million shares outstanding. It trades in a 52-week range of CA$0.11 and CA$6.12.