- Classover secures $500M funding to build a Solana treasury reserve amid severe liquidity issues and a 102% revenue drop.
- The initial $11M tranche will launch Classover’s SOL purchase strategy, using up to 80% of net proceeds for token acquisition.
- With a $900M funding capacity, Classover aims to stabilize its finances and expand digital assets while facing weak financial health.
Classover Holdings Inc., a $63 million edtech firm, has signed a securities purchase agreement worth up to $500 million. The deal, made with Solana Growth Ventures LLC, will support the company’s plan to build a Solana (SOL)-based treasury reserve. This funding comes at a crucial time as Classover faces short-term liquidity pressures. Its current ratio sits at just 0.02, signaling strained working capital. Additionally, the company has seen a 102% year-over-year revenue decline, according to InvestingPro.
Initial $11M Tranche to Launch SOL Strategy
Under the agreement, Classover will initially receive $11 million, contingent on customary closing conditions. The notes convert into Class B stock at 200% of the prior day’s closing price. This conversion rate may adjust depending on market conditions and note provisions. Classover must use up to 80% of net proceeds to purchase SOL, following outlined terms and limits. This plan aligns with the company’s broader SOL accumulation strategy.
Besides this new funding, Classover previously entered a $400 million equity purchase agreement. Consequently, the company’s total potential financing capacity now stands at $900 million. Moreover, it has already purchased 6,472 SOL for around $1.05 million. It also continues to explore acquiring locked token blocks at discounted rates to expand its digital reserve.
Strategic Focus Amid Financial Strain
Founded in 2020, Classover delivers live online K-12 courses worldwide. However, its financial position remains weak, with InvestingPro giving it a “WEAK” Financial Health Score. The company operates with moderate debt but struggles with cash flow and liquidity. Hence, this capital influx becomes vital for stability. Ms. Luo, the company’s CEO, said the agreement reflects a major step in their digital asset treasury strategy. Additionally, Chardan will act as the financial advisor and sole placement agent for the offering.
In a related filing, Classover increased CFO Yanling Peng’s annual salary to $156,000, effective May 1, 2025. The Board and Compensation Committee approved the decision, underscoring active executive governance. Furthermore, Classover reiterated its status as an emerging growth company in the same disclosure.
