Classover Holdings Inc., an edtech company valued at $63 million, has secured a major funding deal with Solana Growth Ventures LLC. The company signed an agreement to issue up to $500 million in senior secured convertible notes to boost its Solana (SOL)-based treasury reserve.
This move is crucial as Classover faces short-term liquidity issues, with a very low current ratio of 0.02, indicating pressure on its working capital. The contract provides for an initial payment of $11 million, which will be made once the standard closing conditions are met.
The convertible notes can be converted into Classover’s Class B common stock at a price that is twice the closing price of the stock before the deal is completed. Importantly, Classover must use up to 80% of the raised funds to buy SOL tokens, reinforcing its strong commitment to its SOL treasury strategy.
Before this, Classover bought 6,472 SOL for about $1.05 million and is now exploring discounted locked tokens to add to its reserves. This deal adds to an earlier $400 million equity agreement, giving Classover a potential $900 million to invest in SOL.
CEO Ms. Luo called this funding a “significant milestone,” highlighting Classover’s goal to integrate Solana into its core finances. Chardan is acting as the sole financial advisor and placement agent for this deal.
Classover was launched in 2020 and provides live online classes for students from K-12 all over the world. Even so, the company’s revenues have dropped by 102% in the past year, and its financial health is weak, which highlights why this funding round is crucial.
Classover also announced that CFO Yanling Peng’s annual salary is now $156,000, beginning May 1, 2025, in line with changes in leadership and company strategy.
This update shows Classover’s confidence in improving its finances and expanding its crypto-backed treasury.
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