Solana treasury strategy gets $500 million boost as Classover issues senior notes to purchase SOL

Solana (SOL) is up 5% on Tuesday after Nasdaq-listed Classover Holdings announced that it will raise up to $500 million to fund its Solana treasury strategy.

SOL sees gains as Classover Holdings joins Solana treasury race

Nasdaq-listed edtech firm Classover Holdings (KIDZ) has entered a securities agreement with Solana Growth Ventures to issue up to $500 million of senior convertible notes, according to a press release. Once completed, Classover will use 80% of the proceeds to boost 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," Classover CEO Stephanie Luo stated in the press release.

The development follows Classover's announcement of a $400 million equity purchase agreement on May 1, bringing its total expected financing to $900 million. 

Classover also shared plans to acquire locked SOL at a discounted price to advance its Solana treasury. Classover had earlier 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 some of the top firms with a Solana treasury strategy.

Meanwhile, Canadian-based SOL Strategies (HODL) announced last Thursday that it has exited its Bitcoin (BTC) position to fully embrace a Solana acquisition plan. The company acquired 26,478 SOL for $4.7 million last week, boosting its total holdings to 420,355 SOL. The move makes SOL Strategies the second-largest corporate holder of Solana behind DeFi Development Corp, which holds over 600,000 SOL.

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

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

These developments follow rising competition among corporate firms to replicate the financial intelligence company Strategy's Bitcoin playbook, not only by leveraging BTC but also other digital assets. As a result, altcoins could wage war with Bitcoin on the corporate front, considering they offer innovative ways to maximize token yields, such as staking, restaking, decentralized finance (DeFi) lending and borrowing.

SOL/USDT daily chart

SOL saw a 5% gain over the past 24 hours, rising toward the $163 resistance after a decline toward $150 on Sunday. However, SOL maintains a negative performance on the weekly timeframe, down 9%, despite the positive momentum from institutions.

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