$37.33 million in debt, Kamino secured by half of SolStrategies (STKE.US) reserves

According to WooFunai, SOLStrategies (STKE.US) is in a liquidity crunch, and its 460,000 SOL reserves are worth about 48 million Canadian dollars, of which more than half have been used as collateral loans to maintain operations.

The complexity of debt structures has increased repayment pressure. SolStrategies' total current liabilities amounted to $37.33 million, but the repayment terms were significantly divided: accounts payable were to be settled within 30 days, Houdini-related debts were due on December 1, and the final payment of the $1.25 million Houdini purchase was repaid in installments within 9-18 months after the transaction was completed on June 1. In contrast, Kamino's debt has no fixed maturity date, and some bonds were converted or matured until 2028 and 2030.

According to data compiled by WooFunai, in order to repay the debt of about 13.9 million Canadian dollars, the company pledged 252,851 SOL to KaminoFinance, worth about 26.4 million Canadian dollars.

Although the lack of a fixed maturity date relieves immediate pressure, once the loan value ratio hits 75%, Kamino has the right to automatically sell collateral, which directly exposes SolStrategies to the risk of a sharp drop in SOL prices.

In terms of financial performance, in the nine months ending June, SolStrategies recorded a net loss of $119.6 million, of which digital asset revaluation losses amounted to 61.95 million Canadian dollars, realized cryptocurrency losses of 22.82 million Canadian dollars, and impairment losses of 16.11 million Canadian dollars.

Despite huge accounting losses, actual cash outflows were relatively manageable, and only 7.8 million Canadian dollars in cash were used for operating activities. To supplement liquidity, on June 8, the company sold 65,001 SOL at an average price of 87.88 Canadian dollars each and obtained 5.75 million Canadian dollars to repay the debt.

Meanwhile, $2.85 million in ATW debt was converted into approximately 1.78 million shares, and $2.14 million was raised through a share plan issued at market price. After deducting Kamino's loans, the company still has net liquidity of approximately $34 million, and management claims that the existing resources are sufficient to support at least 12 months of operation.

On the revenue side, the recently acquired HoudiniSwap contributed 1.2 million Canadian dollars in processing fee revenue and 768,000 Canadian dollars in eBitda in June, and the pledge and validator business brought 622,299 Canadian dollars in revenue.

The core challenge, however, is whether these businesses can generate enough cash to cover debts due in installments without further selling SOL or diluting shareholders' equity. If revenue growth falls short of expectations, SolStrategies may be forced to continue dealing with debt repayment peaks by issuing securities, borrowing using the ATW convertible note mechanism, or selectively selling SOL. This is another typical case of high-leverage operation risk after many crypto asset management companies faced a liquidity crisis.