Classover Holdings to Bolster Solana Treasury with $500 Million Convertible Notes

Classover Holdings has announced plans to issue up to $500 million in senior convertible notes to fund its Solana treasury. This move aims to significantly increase the company’s holdings of SOL, the native cryptocurrency of the Solana blockchain.

• Classover Holdings will issue up to $500 million in convertible notes.
• The funds will be used to bolster its Solana treasury.
• Classover also intends to stake the acquired SOL.
• The company aims to purchase locked tokens at discounted prices.
• SOL gained 5% in the last 24 hours following the announcement.

The Nasdaq-listed edtech firm, Classover Holdings (KIDZ), has entered into a securities agreement with Solana Growth Ventures. The agreement allows Classover to issue up to $500 million in senior convertible notes. According to a press release, 80% of the proceeds will be used to increase its Solana holdings, subject to certain terms and limitations.

“This agreement marks a significant milestone in the company’s strategic initiative to build a SOL-based treasury reserve,” stated Classover CEO Stephanie Luo.

This development follows Classover’s announcement on May 1 of a $400 million share purchase agreement, bringing its total expected funding to $900 million.

Classover also plans to acquire locked SOL at a discounted price to further enhance its Solana treasury. Previously, Classover purchased 6,472 SOL for approximately $1.05 million to initiate its SOL treasury strategy.

The company now joins DeFi Development Corporation and SOL Strategies as major firms with a Solana treasury strategy.

Last Thursday, Canada-based SOL Strategies (HODL) announced its exit from Bitcoin (BTC) to fully embrace a Solana acquisition plan. The company acquired 26,478 SOL for $4.7 million last week, increasing its total holdings to 420,355 SOL. This move makes SOL Strategies the second-largest corporate holder of Solana, behind DeFi Development Corp, which holds over 600,000 SOL.

DeFi Development Corp recently launched a liquid staking token (LST), dfdvSOL, and announced a collaboration with DeFi protocol Kamino Finance on Monday. Kamino Finance will integrate dfdvSOL into its lending and borrowing markets to enhance its utility and yield within the Solana ecosystem.

Users who stake SOL through DeFi Development Corp’s validator pool will receive dfdvSOL as an LST representing their total stake.

Altcoins vs. Bitcoin: A Corporate Strategy Shift?

These developments reflect a growing trend among corporate entities to replicate the playbook of MicroStrategy, a financial intelligence firm. Companies are not only leveraging BTC but also exploring other digital assets. Altcoins offer innovative ways to maximize token yields through staking, restaking, lending, and borrowing in decentralized finance (DeFi).

SOL experienced a 5% gain in the last 24 hours, moving towards the $163 resistance level after a dip to $150 on Sunday. However, SOL maintains a negative performance on the weekly timeframe, down 9%, despite positive institutional momentum.

On the downside, SOL could find support near the $147 level if it faces rejection at $163.

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