Classover Holdings to Raise $500M to Build a Solana Treasury Reserve

Nasdaq-listed Classover Holdings (NASDAQ: KIDZ) announced a massive $550 million SOL purchase with the goal of building its own Solana treasury reserve. As per reports, the firm has entered into an agreement with Solana Growth Ventures LLC with a $500 million securities purchase agreement via senior secured convertible notes. Soon after, the KIDZ stock saw a massive 40% upside on Monday.

Classover Holdings Partners With Solana Growth Ventures

As part of the initial closing, edtech firm Classover announced the signing of an $11 million convertible note financing agreement, a major stepping stone to build its SOL reserve. This financial agreement will allow noteholders to convert their holdings into Classover’s Class B common stock at a 200% premium over the stock’s closing price, just before the closing date.

The move comes as the edtech firm navigates liquidity challenges. According to InvestingPro data, the company’s current ratio of just 0.02 highlights significant working capital pressure. Thus, this latest funding and partnership with Solana Growth Ventures, help it to navigate through the survival crisis.

Public-listed firms are increasing their exposure to SOL as the altcoin gets mainstream attention. A day before, Asia-based NewGen Group announced a $30 million SOL staking strategy, while doubling down on its previous commitment.

80% Will Go to SOL Purchases

As per the agreement, Classover will have to allocate a minimum of 80% of the net proceeds from the note to SOL buying. Note that the latest initiative is separate from its earlier $400 million equity purchase agreement. Thus, the firm’s total potential financing capacity for its Solana treasury reserve is a massive $900 million.

Prior to this agreement, Classover had already initiated its SOL reserve plan, acquiring 6,472 SOL tokens for approximately $1.05 million, reported Investing.com. Company CEO Ms. Luo hailed the agreement as a pivotal milestone in their strategic initiatives, underscoring its commitment to integrating Solana (SOL) into its treasury operations. Soon after the Classover stock surged by a massive 40%, ending Monday’s trading sessions at $3.72.

Corporations Rush for BTC, ETH, SOL Reserves

Public-listed companies are increasingly becoming comfortable for building their own crypto reserves with top digital assets like BTC, ETH, and SOL being their preferred choice. Sharplink Gaming closed a deal to build a massive $425 Million Ethereum Treasury just a day ago. BTCS also announced 1000 ETH purchases, taking its total holdings to 13,500 Ethereum.

Following today’s development, SOL price is up 2% to $158. This partnership could allow SOL to close the gap with ETH as investors would be carefully watching this development.