Classover Secures $500M Deal to Boost Solana-Based Treasury Amid Liquidity Strain

• Classover will use up to 80% of new funding to buy SOL and grow its crypto treasury.
• The company signed a $500 million deal to address liquidity issues and support its Solana strategy.
• Classover stock jumped after the funding news and shows rising interest in Solana-based reserves.

Classover Holdings Inc. has entered into a funding agreement worth up to $500 million with Solana Growth Ventures LLC. The Nasdaq-listed edtech company will issue senior secured convertible notes as part of this arrangement. 

The funds will support Classover’s Solana (SOL)-based treasury reserve strategy. An initial payment of $11 million is expected once all customary closing conditions are fulfilled.

Liquidity Concerns Prompt Urgent Action

Classover is currently facing significant liquidity issues. The firm’s current ratio is 0.02, indicating limited short-term assets to meet its liabilities. This funding deal is seen as a critical step to stabilize its finances and strengthen its balance sheet.

Under the agreement terms, Classover must allocate up to 80% of the raised funds to purchase SOL tokens . The notes can be converted into Class B common stock at a price twice the stock’s closing value before the deal.

Expanding the Solana Reserve Plan

This funding builds on Classover’s previous $400 million equity purchase agreement. Combined, the two deals give the company access to up to $900 million, dedicated to its SOL strategy. This capital will be used to build a large digital asset reserve linked to the Solana blockchain.

Classover had earlier bought 6,472 SOL tokens valued at approximately $1.05 million. It is now exploring discounted locked token purchases to expand its holdings further. The company views this strategy as a long-term approach to enhance its corporate reserves.

Revenue Drop and Executive Changes

Classover was founded in 2020 and focuses on live online learning for K-12 students worldwide. Despite its early growth, the company’s revenues have declined by 102% year-over-year. This sharp drop highlights the importance of the latest capital injection.

Classover joins a rising number of companies turning to SOL-based treasury models. Others, such as DeFi Development Corp ., Upexi, and Janover, have also begun building reserves around the Solana blockchain.

The company has appointed Chardan as its sole financial advisor and placement agent for the transaction. Classover’s stock rose 39.85% after the announcement before dropping slightly in after-hours trading.