Key Takeaways:
SOL Strategies Inc. paid $18 million to acquire HoudiniSwap, a privacy-focused cross-chain swap aggregator, adding a transactional revenue stream to its Solana infrastructure platform.
"HoudiniSwap gives us something we didn't have before: a high-volume consumer-facing product that benefits directly from a growing demand for privacy solutions and cross-chain portability," Michael Hubbard, CEO of SOL Strategies, said.
The Toronto-based company paid $7 million in cash and $4 million in stock at closing, with an additional $5.75 million due Dec. 1, 2026, and a $1.25 million indemnity holdback over 18 months. HoudiniSwap processed about $2.5 billion in cumulative swap volume across 32 exchange partner integrations, generating more than $13 million in revenue in 2025. The deal includes a two-year earn-out of as much as $10 million tied to adjusted EBITDA above a $2.5 million annual threshold.
The acquisition extends SOL Strategies beyond validator and liquid staking into the transaction layer, where it will compete with established swap aggregators on Solana such as Jupiter. The company financed the $7 million cash component through decentralized finance protocols on Solana without selling its treasury SOL, preserving its core staking asset base.
The $7 million upfront cash was raised via DeFi lending on Solana, allowing the company to avoid liquidating its SOL holdings. The shares issued at closing — 2,812,301 common shares priced at a 90-day volume-weighted average price — are subject to a statutory four-month hold period.
SOL Strategies shares traded at $1.40 on Monday, down 6.67 percent, extending a decline from the stock's 52-week high of $13.35. The stock has fallen about 89 percent from that peak, reflecting broader headwinds for crypto-exposed equities.
The HoudiniSwap deal follows SOL Strategies' April acquisition of Darklake Labs for $1.2 million, which added zero-knowledge privacy technology through its Zyga system. Together, the two purchases position SOL Strategies as a more vertically integrated player on Solana, combining validator infrastructure, liquid staking, privacy technology and a consumer-facing swap product.
HoudiniSwap is a non-custodial cross-chain swap aggregator that routes trades across multiple blockchain networks, with integrations including Jupiter and Solflare on Solana. The platform's privacy features allow users to exchange assets across chains without relinquishing custody of their funds.
The earn-out structure ties additional payments to HoudiniSwap's profitability, with the full $10 million payable only if adjusted EBITDA exceeds $2.5 million annually over two years. A.G.P./Alliance Global Partners, which advised SOL Strategies on the deal, received $500,000 in cash fees and 200,000 common share purchase warrants exercisable at CAD $1.91 for three years.
This article is for informational purposes only and does not constitute investment advice.
