Solana Company, previously known as Helius Medical Technologies, filed a Form S-3ASR shelf registration with the U.S. Securities and Exchange Commission, allowing for the resale of shares from private investors and future securities offerings tied to its digital asset treasury strategy. This move enabled early investors from a $500 million private placement in September, led by firms like Pantera Capital and Summer Capital, to sell their shares, resulting in a sharp stock decline.
On the day the resale became effective, Solana Company's stock opened at $8.92 but closed at $6.87, marking a 22% drop in a single session. Trading volume surged from under 1 million shares to approximately 4.6 million shares. Over the past week, the stock has plummeted by over 55%, erasing nearly 60% of the company's market value, which now stands at around $276.86 million.
The company has pivoted from medical devices to focusing on accumulating and staking SOL tokens as part of its core treasury strategy. It currently holds 2.2 million SOL, making it the second-largest publicly listed holder of the token. This strategy aims to provide regulated exposure to digital assets through its Nasdaq listing, with plans to increase SOL per share over time. CEO Joseph Chee defended the resale decision, stating, "We're playing the long game, and we're inviting you to join us. We're playing offense, not defense." He emphasized transparency and confidence in the long-term vision, despite the volatility.
Concurrently, the SOL token price dropped 4.4% in 24 hours to around $184.74, with a 7% decline over the week, reflecting broader market reactions. Solana Company's approach shifts price discovery from token markets to equity markets, positioning itself as a bridge between traditional finance and blockchain assets.
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