Nasdaq-listed edtech firm Classover Holdings (KIDZ) has secured up to $500 million in funding to build a Solana (SOL)-based treasury reserve.
The company announced Monday that it will allocate up to 80% of the proceeds from the deal, a senior secured convertible notes agreement with Solana Growth Ventures, to purchasing SOL tokens, signalling a strategic pivot toward cryptocurrency integration.
This funding complements Classover’s earlier $400 million equity purchase agreement, bringing its total potential financing for SOL purchases to $900 million. The edtech firm has already begun executing its plan, having acquired 6,472 SOL (worth approximately $1.05 million) as a foundational step.
The company’s shares rose nearly 40% to $3.72 during Monday’s trading session. While the stock dipped slightly in after-hours trading, the surge reflects optimism about the company’s blockchain pivot amid broader market trends.
Classover Holdings Partners with Solana Ventures
The agreement enables the issuance of up to $500 million in convertible notes, with an initial tranche of $11 million expected to close imminently. The notes can be converted into Classover’s Class B common stock at twice the stock’s closing price before the deal, incentivizing long-term investment while funding the company’s aggressive SOL acquisition strategy.
Classover’s focus on Solana mirrors a broader corporate shift toward crypto treasuries as alternatives to traditional assets, such as cash or gold.
SOL’s price resilience and institutional adoption have made it a favored choice, with firms like DeFi Development Corp. and Upexi also accumulating the token. The strategy offers potential upside from price appreciation and staking rewards, while hedging against volatility in fiat currencies.
Glaring Financial Challenges at Classover
The company reported a 102% revenue decline over the past year and a current ratio of 0.02, a glaring liquidity concern. By anchoring its treasury in Solana (SOL), Classover aims to stabilize its balance sheet while capitalizing on the growth potential of cryptocurrency.
However, the strategy is not without risk. SOL’s price volatility could amplify financial pressures if the market dips, and regulatory scrutiny of corporate crypto holdings remains a wildcard.
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