SOL Strategies Converts C$2.46M Facility at C$2.14, Posts 36.7% Revenue Rise
SOL Strategies will convert half of its C$4.92M credit facility into equity at C$2.14 per share on Jan 7, 2026, issuing 2.3M new shares, and repay the rest in cash. FY2025 revenue climbed 36.7% to CAD14.5M, while adjusted EBITDA dropped to CAD4.2M despite SOL holdings growing to 435,159 SOL (~CAD126.4M).
1. Credit Facility Amendment Details
SOL Strategies Inc. has reached an agreement to restructure its existing credit facility with former Board Chairman and significant shareholder Antanas Guoga. Under the amended terms, half of the outstanding balance will convert into equity on January 7, 2026 at C$2.14 per share, reflecting the December 30 closing price. This will result in the issuance of 2,300,726 common shares, each subject to a statutory hold period of four months and one day from the issuance date. The amendment is treated as a related-party transaction under MI 61-101, with the company relying on exemptions from formal valuation and minority approval requirements.
2. Equity Conversion Impact
The conversion of 50% of the debt into equity reduces SOL Strategies’ leverage while aligning interests with its former chairman, who now holds both newly issued shares and existing shares and options representing approximately 13% of the company’s undiluted share count. Interim CEO Michael Hubbard emphasized that this balance sheet optimization follows prior repayments of roughly C$7 million in October and November, and underscores continued confidence in the firm’s Solana infrastructure business.
3. Cash Repayment Schedule
The remaining debt under the amended facility will be repaid in cash in two equal tranches of C$2,461,777.12 each. The first tranche is due within seven days of signing, with the second tranche payable within 45 days. Completion of these cash payments will fully retire the outstanding credit facility, further strengthening the company’s liquidity and financial flexibility heading into 2026.
4. Fiscal Year 2025 Financial Results
For the year ended September 30, 2025, SOL Strategies reported revenue of approximately CAD$14.5 million, a year-over-year increase of 36.7%. The company’s SOL holdings rose to 435,159 SOL (valued at around CAD$126.4 million), up from 100,763 SOL (CAD$20.8 million) the prior year. Revenue included CAD$5.4 million in validator rewards (zero in fiscal 2024) and CAD$4.8 million in staking rewards (up from CAD$0.3 million). Adjusted EBITDA totaled CAD$4.2 million, down from CAD$9.5 million in the previous year. Management will host a webcast and conference call on January 6, 2026 to discuss these results and growth outlook.