Classover Holdings (NASDAQ:KIDZ) secures $500M deal with Solana Growth Ventures to buy SOL, building a crypto treasury reserve.
Nasdaq-listed Classover Holdings (NASDAQ: KIDZ) announced a massive $550 million SOL purchase to build its own Solana treasury reserve. As per reports, the firm has engaged in an agreement with Solana Growth Ventures LLC with a $500 million securities purchase agreement via senior secured convertible notes. The KIDZ stock experienced a significant 40% increase on Monday shortly thereafter.
Classover Holdings has formed a partnership with Solana Growth Ventures
Classover, an edtech firm, has announced the signing of a $11 million convertible note financing agreement as part of the initial closure. This agreement is a significant milestone in developing Classover’s SOL reserve. This financial agreement will enable noteholders to exchange their holdings for Classover’s Class B common stock at a 200% premium to the stock’s closing price just before the closing date.
The decision is made in response to liquidity constraints the educational technology company faces. The company’s current ratio of 0.02, as per InvestingPro data, indicates substantial working capital pressure. Therefore, the most recent funding and partnership with Solana Growth Ventures have enabled it to mitigate the survival crisis.
SOL is gaining mainstream attention, and public-listed firms are increasing their exposure to the altcoin. NewGen Group, an Asian company, announced a $30 million SOL staking strategy the day before, reiterating its previous commitment.
80% of the funds will be allocated to SOL purchases
Classover is required to allocate a minimum of 80% of the net proceeds from the note to SOL buying following the agreement. Please be advised that the most recent initiative is distinct from the $400 million equity purchase agreement that was executed previously. Consequently, the Solana treasury reserve of the company has a total potential financing capacity of $900 million.
Classover had already embarked on its SOL reserve plan, acquiring 6,472 SOL tokens for an estimated $1.05 million, according to Investing.com, before this agreement. Ms. Luo, the company’s CEO, praised the agreement as a critical milestone in their strategic initiatives, emphasizing their dedication to integrating Solana (SOL) into their treasury operations. The Classover stock experienced a significant 40% increase shortly thereafter, concluding Monday’s trading sessions at $3.72.
Corporations are clamoring for reserves of BTC, ETH, and SOL
Public-listed companies are increasingly at ease with establishing their own crypto reserves, with the top digital assets being BTC, ETH, and SOL. Sharplink Gaming closed a deal to build a massive $425 Million Ethereum Treasury just a day ago. BTCS also announced 1000 ETH purchases, bringing its total holdings to 13,500 Ethereum.
The price of SOL has increased by 2% to $158 as a result of the events and developments of today. This partnership can potentially enable SOL to narrow the gap with ETH, as investors would be closely monitoring this development.
