$500M Bet On Solana: Education Platform Aims To Supercharge Its Treasury
Classover Holdings Inc. (NASDAQ: KIDZ) signed a deal with Solana Growth Ventures LLC for up to $500 million in senior secured convertible notes, starting with an $11 million investment. The company plans to allocate up to 80% of net proceeds to purchase SOL tokens, aiming to establish a Solana-based treasury reserve. Classover's liquidity ratio was previously 0.02, indicating tight cash flow, and this investment is intended to stabilize finances. The convertible notes can be converted into Class B common stock at twice the closing share price before the deal closes, providing potential upside for early investors while minimizing dilution risks. Classover's revenue dropped nearly 100% year-over-year, raising concerns amid a market cap of about $60 million. Recent SEC filings indicate changes in executive pay to retain leadership during financial challenges. Solana's price has faced pressure, currently trading around $162, with a total market cap of $84.7 billion. A decline in SOL's price could adversely affect Classover's treasury strategy.
