Sol Strategies (SOLS) Rises 10% on Laine Acquisition, Expanding Solana Stake

Sol Strategies, a holding company focused on Solana, has significantly increased its stake in the blockchain network through the acquisition of Laine, Solana’s 65th largest individual validator. This acquisition adds 1.5 million delegated staked SOL to Sol Strategies’ existing 1.8 million, nearly doubling its position in the network.

This move is part of Sol Strategies’ broader strategy to become a leading player in the Solana ecosystem. The company has acquired three Solana validator operators since pivoting its focus to Solana in September. The latest acquisition comes at a critical time as a governance vote on a proposal to reduce validator revenue is underway.

Sol Strategies operates as a publicly traded company in Canada, providing regulated access to Solana for investors. This model is particularly valuable for investors in regions where Solana ETFs have been slow to develop. Although currently listed only in Canada, Sol Strategies has applied for a listing on the Nasdaq, which could expand its investor base.

As part of the acquisition, Laine founder Michael Hubbard has been hired as Sol Strategies’ chief strategy officer. This move not only brings Hubbard’s expertise to the company but also grants Sol Strategies access to stakewiz.com, a popular site for information about Solana validators. Hubbard, an active member of Solana’s validator community, has welcomed the move, stating that it will amplify his impact on Solana.

The acquisition of Laine and the hiring of Hubbard come as Solana’s validator community is voting on SIMD-0228, a proposal to transition to a market-based inflation mechanism. This change aims to prevent Solana from overpaying for security but will reduce validator revenue. As of the latest update, 72% of Solana validator votes, including those from Laine and Sol Strategies, were in favor of the proposal, while 23% were against and 5% abstained.

Despite the potential reduction in validator revenue, Sol Strategies remains optimistic about the future of Solana. The company believes that the fundamental demand for SOL staking will not be affected and that the approval of Solana ETFs could drive institutional inflows, reinforcing demand for staking services. Sol Strategies sees these shifts as an opportunity to solidify its role as the leading publicly traded Solana company, leveraging both organic growth through staking and inorganic expansion through strategic acquisitions.