Solana gains ground on Wall Street with Classover's million-dollar bet
SOL
Classover Holdings, Inc., an educational technology company listed on Nasdaq, will issue up to 500 million dollars in senior secured convertible bonds to finance a strategic reserve of Solana (SOL).
Of the net proceeds, 80% will be allocated to the purchase of this cryptocurrency, following a strategy inspired by the model of Michael Saylor (CEO of Strategy), but replacing bitcoin (BTC) with SOL.
The agreement, signed with Solana Growth Ventures LLC, includes an initial closing of 11 million dollars, subject to normal financing conditions. The bonds may be converted into Class B common shares of Classover at an initial price equivalent to 200% of the closing stock price the day before the closing, with adjustments according to the established terms.
This issuance adds to a previous agreement to purchase shares for 400 million dollars, raising the company's total financing capacity to 900 million dollars.
Classover had already begun its treasury strategy in Solana before this announcement. The company acquired 6,472 SOL for approximately 1.05 million dollars, a first step in its long-term plan to accumulate tokens from this network. Additionally, the company is exploring the purchase of blocks of discounted locked tokens, seeking to optimize its accumulation strategy.
Hui Luo, CEO of Classover, emphasized that this agreement "reinforces Classover's commitment to lead in financial strategies based on decentralized networks," directly integrating SOL into its treasury operations.
Classover's decision reflects an emerging trend among public companies seeking to diversify their reserves with cryptocurrencies. Inspired by Michael Saylor's strategy, who turned MicroStrategy (now Strategy) into a benchmark for bitcoin investment, Classover adapts this approach to Solana, a network known for its high speed and low transaction costs.
With this issuance of convertible bonds, Classover acquires financial flexibility. Noteholders will be able to convert their investment into shares of the company, which could attract investors interested in both the growth of the company and its bet on SOL. The structure of the agreement, which requires that most of the funds be allocated to the purchase of Solana, ensures that the treasury strategy remains focused on the cryptocurrency.
However, the strategy is not without risks. The volatility of cryptocurrencies, including SOL, poses challenges for companies integrating these assets into their balance sheets. Nevertheless, Solana still has fuel to continue increasing in price this year. In fact, some estimate that this altcoin will reach 300 dollars in this cycle.
