Sol Strategies [CSE:HODL], the Canadian-listed blockchain investment vehicle, said this month it has recovered over USD 611,000 in the form of USDC from the Lucy Labs Flagship Offshore Fund. This is part of the bankruptcy proceedings being held in the wake of the collapse of FTX Trading.
It is good news for Sol Strategies shareholders, as the amount represents a premium of 122% on the company’s original investment. It has previously been written off in December 2022 following the collapse of FTX.
Sol Strategies, which previously traded as Cypherpunk Holdings, has also increased its holdings in Solana to USD 20.8m. These are currently being held in custody with Coinbase. Sol Strategies said the average acquisition price was USD 142.43, excluding coverage.
Leah Wald, CEO of Sol Strategies, said that the recovered assets would also be allocated within the Solana eco-system.
Sol Strategies is a publicly traded Canadian company which is committed to the continued development of the blockchain and cryptocurrency ecosystem through its activities in the private equity and financial markets and its support for related technology innovation.
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Through its investments, Sol Strategies offers its shareholders exposure to Solana through its direct investing and staking activities. By staking SOL, Solana’s native token, and potential future investments in Solana-based projects and infrastructure, Sol Strategies is seeking to benefit from the potential growth of Solana and its other investments to drive value for its shareholders, including those seeking to avoid the complexities of managing cryptocurrency assets directly.
The company also owns a number of private investment positions within the blockchain and digital assets ecosystem.
Sol Strategies shifts from Bitcoin to Solana
Sol Strategies rebranded in September from Cypherpunk Holdings, to reflect a shift in its overall investment strategy. Company management wanted to refocus on Solana, having previously been very heavily invested in Bitcoin. Sol Strategies was one of the first publicly traded investment vehicles investing its treasury assets in Bitcoin.
Wald said that the focus going forward was very much on investments within the Solana ecosystem, including infrastructure and projects related to Solana.
Cypherpunk was a pioneer in providing investors with listed exposure to crypto assets and related projects in 2018, at a time when there were not ETFs / ETCs investing in the space. Its original strategy was based on Bitcoin and blockchain-related assets.
Sol Strategies is focused on operating its own validator node on Solana through a third-party service provider and making strategic investments in Solana-based projects and infrastructure. This shift provides its investors with an opportunity to benefit from any future growth related to its investments and participation in the Solana ecosystem, blockchain and cryptocurrency sector, without the complexities of directly purchasing and managing cryptocurrency assets.
Banks are sounding increasingly positive on the prospects for Solana. Standard Chartered LON:STAN is forecasting a potential five fold increase in the price of Solana if Donald Trump wins the US presidential election next month. Geoff Kendrick, Head of Digital Assets Research at Standard Chartered, predicts a massive increase in the price of Solana because he sees a Trump administration being more supportive of the Solana ecosystem than Kamala Harris.
This could include the introduction of a Solana-based ETF, and a possibly huge level of growth in the Solana ecosystem.