- Cypherpunk Holdings becomes SOL Strategies.
- Name change draws parallels with MicroStrategy.
- Invest millions in SOL and become a major validator.
Solana has had a volatile few months. Its institutional credentials were hit after BlackRock and other asset managers suggested little demand for a Solana ETF. At the same time, the memecoin craze losing steam caused its on-chain metrics to look less impressive.
Still, thanks to its technology and use cases, many are sticking with Solana. One is Cypherpunk Holdings, a fund that decided to go all-in on SOL.
Cypherpunk Doubles Down, Becomes SOL Validator
A recent move by a fund manager suggests that institutions have not given up on Solana just yet. On Thursday, September 12, Cypherpunk Holdings officially rebranded to SOL Strategies. This rebrand comes hand in hand with a company’s doubling down on Solana.
“With the Company rebranding to Sol Strategies, we are positioned to capitalize on the growth potential within the Solana ecosystem,” explained the company’s CEO, Leah Wald. The fund will continue to trade under the ticker HODL on the Canadian Securities Exchange (CSE) and other markets.
SOL Strategies currently holds 86,000 SOLs worth more than $11 million. They stake most of these coins and even run a designated validator node on Solana. Notably, as of June, the company made approximately $57,000 in staking fees on the network.
Cypherpunk Holdings Becomes MicroStrategy for Solana?
SOL Strategies’ name change resembles MicroStrategy, a major investor in Bitcoin. Run by Bitcoin maximalist Michael Saylor, the funds’ main business plan is to buy as much Bitcoin as possible. As Saylor explains, Bitcoin is currently the biggest economic opportunity.
Despite the inherent risks, this strategy has worked so far. MicroStrategy currently holds over 226,500 BTC, purchased at a price between $15,000 and $23,000. With the current Bitcoin price at $58k, their positions have been wildly profitable.
It is unclear whether Sol Strategy will replicate MicroStrategy’s success. Earlier, a BlackRock executive questioned the demand for Solana among institutional investors. When it comes to crypto, they are mostly looking at Bitcoin, he explained.
On the Flipside
- While Solana has seen significant growth, especially with NFTs and memecoins, it also faces challenges. Technical issues, including outages and congestion, continue to be a major risk.
- Similar to BlackRock, Sygnum Bank stated that Solana lacks name recognition among major investors.
Why This Matters
A complete pivot to SOL might be risky, but it suggests the firm’s trust in Solana and its ecosystem.
Read more about Solana’s recent performance:
Solana Memecoin Exposure Becomes a Major Risk for the Network
Read more about a potential US CBDC:
US Central Bank Digital Currency Unlikely, Circle CEO Claims
