Classover Holdings Inc. (NASDAQ: KIDZ, KIDZW), a live online learning company, signed an agreement with Solana Growth Ventures LLC. This deal allows Classover to issue up to $500 million in senior secured convertible notes to build a treasury reserve using Solana (SOL) cryptocurrency.
The company will initially receive $11 million after fulfilling standard closing conditions. With a market value of $63 million, Classover faces short-term liquidity challenges. Its current ratio is 0.02, showing pressure on available working capital.
This new funding is important for the company to maintain operations and support its strategy. Classover must use up to 80% of net proceeds from the notes to buy SOL tokens, as required in the agreement.
The convertible notes let Solana Growth Ventures convert the notes into Classover’s Class B common stock. The initial conversion price is set at twice the stock’s closing price on the day before closing, with possible adjustments.
This financing adds to an earlier $400 million equity purchase deal. Combined, these agreements could provide up to $900 million to support Classover’s SOL acquisition plan.
CEO Luo highlights strategic Solana treasury integration
Before this, Classover already bought 6,472 SOL tokens for about $1.05 million. The company also plans to buy discounted locked tokens to grow its treasury reserve.
Ms. Luo, Classover’s CEO, called the agreement a key milestone to integrate Solana into the company’s treasury. Chardan acts as a financial advisor and sole placement agent for the offering.
Full details will appear in a Form 8-K filed with the U.S. Securities and Exchange Commission. Founded in 2020, Classover provides live online K-12 classes around the world.
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