Sol Strategies Inc. (NASDAQ: STKE) will acquire cross-chain swap aggregator HoudiniSwap for $18 million, a move that sent its stock up 12.6% and diversifies its revenue beyond Solana staking operations.
"The acquisition of HoudiniSwap adds a proven, scalable technology platform with a significant user base and transaction volume, immediately transforming our business into a more diversified, software-driven operation," Sol Strategies CEO Michael Hubbard said in a statement.
The $18 million purchase price consists of $8.25 million in cash, a $5.75 million promissory note, and $4 million in stock, according to the announcement. The deal also includes a two-year earnout of up to $10 million, contingent on HoudiniSwap achieving a $2.5 million annual EBITDA hurdle. HoudiniSwap, which has processed over $2.5 billion in cumulative transaction volume, generated approximately $13 million in revenue in 2025.
The acquisition marks a significant step in Sol Strategies’ plan to build a comprehensive institutional-grade infrastructure platform on the Solana blockchain. By integrating HoudiniSwap’s privacy-focused, non-custodial routing technology, the company moves beyond validator services into the more lucrative transaction-based revenue sector, positioning it to capture a larger share of the growing DeFi market on Solana.
The deal provides Sol Strategies with a software-driven business line that complements its existing validator and staking operations on the Solana network. HoudiniSwap functions as a non-custodial aggregator, routing user swaps across more than 18 decentralized exchanges and numerous blockchain bridges to find optimal pricing without taking custody of user funds.
Crucially for Sol Strategies, more than half of HoudiniSwap’s transaction volume over the last 12 months involved the Solana network, indicating strong existing synergy. Chief Strategy Officer Stephen Ehrlich noted that the addition of scalable technology and transaction-based revenue is expected to create stronger margins and more durable cash flow for the company. Sol Strategies confirmed it will not sell assets from its Solana treasury to finance the deal, instead using other capital reserves.
This transaction follows Sol Strategies' recent acquisition of Darklake Labs and its Zyga privacy technology, which uses zero-knowledge proofs to enhance transaction integrity and mitigate risks like front-running. Together, these acquisitions form the core of a broader strategy to build a multi-faceted platform on Solana focused on privacy, efficient trade execution, and cross-chain liquidity for institutional clients.
HoudiniSwap supports over 100 blockchain networks, providing a critical infrastructure piece that allows for seamless asset movement between Solana and other ecosystems. This capability is vital for attracting institutional capital that requires robust, secure, and efficient on-chain transaction infrastructure. The acquisition is expected to close on or before May 29, subject to customary closing conditions.
This article is for informational purposes only and does not constitute investment advice.
