Key Takeaways
SOL Strategies Inc. (NASDAQ: STKE) has entered a definitive agreement to acquire the non-custodial cross-chain swap aggregator HoudiniSwap for USD $18 million, expanding its focus beyond staking into transaction-routing infrastructure. The deal, announced May 4, aims to build on SOL Strategies' goal of establishing Solana as a core component of institutional finance.
"Houdini is a trusted product with users and volume, and average swap sizes well above typical retail platforms," said Michael Hubbard, Chief Executive Officer of SOL Strategies. "We see this as a critical piece to enable important fungibility between the entire gamut of blockchain networks as well as mobility in and out of Solana. It broadens SOL Strategies into a cross-chain transaction engine."
The acquisition is structured with USD $8.25 million in cash, a USD $5.75 million six-month promissory note, and USD $4 million in company shares. Houdini, which saw over half its trailing 12-month volume touch the Solana blockchain, reported approximately USD $13 million in revenue for 2025 and has processed more than USD $2.5 billion in transaction volume across over 100 blockchain networks since its launch.
The deal adds a fifth revenue stream for SOL Strategies and is expected to create more durable cash flow less dependent on single market cycles. The acquisition follows SOL Strategies' recent purchase of Darklake's Zyga privacy technology, with the firm seeing "a tremendous opportunity to improve privacy and execution for transactions." Following the news, STKE shares traded down 4.00% to $1.24 as of market close.
"This transaction is indicative of the company we are building," said Stephen Ehrlich, Chief Strategy Officer of SOL Strategies. "While staking remains a pillar of our business, adding scalable technology and transaction revenues creates stronger margins, more durable cash flow, and less reliance on any single market cycle."
The agreement also includes a two-year earnout of up to USD $10 million, contingent on Houdini meeting a USD $2.5 million annual EBITDA hurdle. This performance-based component aligns the acquisition's final cost with the platform's future profitability. Houdini has established partnerships with over 18 decentralized exchanges and integrated with numerous self-custodial wallet providers.
"What SOL Strategies brings is something we couldn't replicate on our own: established relationships with institutional partners, a validator network already trusted by over 34,000 wallets, and a public company platform," said Louis Goldberg, Chief Executive Officer and Founder of HoudiniSwap.
The acquisition is expected to close on or before May 29, 2026, subject to customary closing conditions, including the approval of the Canadian Securities Exchange (CSE).
This article is for informational purposes only and does not constitute investment advice.
