Solana Company (HSDT), a digital asset treasury firm backed by Pantera Capital, is pushing ahead with plans to unlock shares for early backers in its $500 million PIPE round. This move underscores the company’s commitment to investor accessibility and transparency.
The company’s decision is particularly noteworthy as it comes despite a downtrend in the HSDT stock price, where the share trades below the initial purchase price of $6.881. It paves the way for early investors to liquidate their holdings amid the price plummet.
Solana Company Unlock Stocks via PIPE Round
In the latest development, Panter Capital-backed Solana Company has decided to move forward with the shares unlock despite the stock price decline. Via the $500 million PIPE round, the platform is proceeding with registering shares from the private placement for resale. In an X post, the platform noted, “’Ripping off the band-aid’ is the approach we are confidently taking, while many other DATs are choosing to stall.”
The shares, which were privately placed at $6.881 each in September, are now eligible for sale ahead of schedule, according to a Monday press release. Meanwhile, HSDT’s price has plummeted to around $6.50 after a sharp three-day decline that erased nearly 60% of its market value, with a 17% drop on Monday alone. Executive Chairman Joseph Chee noted,
“The pressure on our stock price that comes with the effectiveness of the resale registration statement will likely shake out weak hands, but we believe this will also establish a remaining foundation of committed long-term shareholders.”
As of press time, the HSDT stock price is at $6.99, marking a slight surge of 1.75% over the past 24 hours. However, the value is still down by 57% and 71% over the past five days and 30 days, respectively.
What is PIPE?
PIPE deals, or private investments in public equity, enable institutional investors to purchase public company shares at predetermined prices, often at a discount. This method has gained popularity among digital asset treasury firms looking to swiftly raise capital to acquire cryptocurrencies. However, when investors are allowed to sell their holdings, some companies have seen their stock prices plummet, casting doubt on the long-term viability of this structure in the crypto market.
Solana Capital was initially known as Helius Medical Technologies and rebranded as it raised a $500 million for establishing a Solana Treasury. On September 29, the firm announced this strategic development, with its ticker symbol remaining unchanged as HSDT.
