Edtech company Classover Holdings has signed a landmark agreement with Solana Growth Ventures LLC to establish a substantial cryptocurrency treasury, marking a bold strategic pivot for the struggling online education platform.
The $500 million deal involves senior secured convertible notes, with an initial payment of $11 million contingent on standard closing conditions. Classover is required to allocate up to 80% of the raised funds to purchasing SOL tokens, demonstrating a strong commitment to building a crypto-backed financial strategy.
Prior to this agreement, the company had already acquired 6,472 SOL for approximately $1.05 million and is now exploring additional discounted locked tokens. Combined with an earlier $400 million equity agreement, Classover now has the potential to invest up to $900 million in Solana.
Classover Faces Financial Issues
The move comes at a critical time for the company, which has been experiencing significant financial challenges. Classover's revenues have plummeted by 10.2% in the past year, and its current ratio of 0.02 indicates severe working capital pressures. The company, valued at $63 million, was launched in 2020 as an online education platform serving K-12 students globally.
CEO Ms. Luo described the funding as a "significant milestone," emphasizing Classover's strategic integration of Solana into its core financial operations. The company has also adjusted its leadership compensation, with CFO Yanling Peng's annual salary set at $156,000 beginning May 1, 2025.
Chardan is serving as the sole financial advisor and placement agent for the deal. The convertible notes can be converted into Classover's Class B common stock at a price double the stock's closing price before the deal's completion.
Looking Ahead: This aggressive treasury strategy signals Classover's confidence in cryptocurrency as a potential solution to its financial challenges, marking a notable trend of tech companies exploring digital asset reserves.
