Sonic Labs has agreed to provide $40 million in convertible funding to Spetz, the public company operating as SonicStrategy, the firms announced Tuesday. The capital will be issued as a six‑month, zero‑coupon convertible note denominated in Sonic’s native S tokens.
Under the deal the debt can convert into common stock at $4.50 per share if SonicStrategy uplists from the Canadian Securities Exchange to Nasdaq or another similar U.S. exchange and raises at least $40 million in outside capital. Shares issued on conversion will be subject to a three‑year lockup; the S tokens contributed by Sonic Labs carry a four‑year lockup.
SonicStrategy said it will deploy the funds to support its corporate treasury, expand validator operations and pursue blockchain investments. The companies expect the transaction to close within five business days under Canadian Securities Exchange rules.
The financing is part of a broader Sonic push into U.S. markets after community approval of a $150 million expansion plan that includes work on an exchange‑traded fund and a private investment in public equity (PIPE) vehicle. Sonic Labs CEO Michael Kong said the investment strengthens the link between the blockchain and traditional capital markets and reflects confidence in SonicStrategy’s ability to provide institutional‑grade infrastructure.
Market reaction was muted: S tokens were up roughly 0.4% in the past 24 hours while the broader CoinDesk 20 index rose about 1.3%. Investors should note the conditional nature of the conversion and the long lockups — both of which affect liquidity and dilution risk — and remember that token and equity prices remain volatile.
Source: SonicStrategy press release. Read the original coverage for full details.