HSDT plunges over 55% after Solana Company files resale registration

Digital asset treasury firm Solana Company which was initially known as Helius Medical Technologies opened a resale window for private investors to unlock previous restricted shares last week. The opening came as a result of the $500 million funding round led by Pantera Capital and Summer Capital. 

The company decision to open the resale window has triggered a drop in HSDT stock by over 11% and shedding off over 55% of the firms market capitalization throughout the past week. The resale registration grants private placement investors from the September funding round the right to sell their shares in the open market. The firms stock’s daily trading volumes have however increased from less than a million shares to approximately 4.6 million. 

HSDT stock drops over 11% today

Joseph Chee, Solana Company CEO defended the decision to open the resale registration saying it reflects the firms confidence and long-term commitment to transparency. 

“We’re playing the long game, and we’re inviting you to join us. We’re playing offense, not defense. Thank you for your trust and partnership. Markets can be volatile, and digital asset treasury companies will continue to experience volatility with the broader macro market.” 

–Joseph Chee, Solana Company CEO

Solana Company’s stock has dropped sharply since yesterday from highs of about $8.97 to about $6.9 today representing 11.47% drop over the past 24 hours. The current market cap stands at roughly $276.86 million with an average volume of $1.55 million. The resale registration triggered an initial stock rally by almost 25% before tumbling down now over 55% over the past five days reflecting on the risk of putting crypto exposure on a single stock, especially when lockups expire. 

A Securities and Exchange Commission (SEC) filing disclosure showed Solana Company raised approximately $500 million in mid September via a twin private placements, one funded through cash and the other in SOL tokens. Pantera Capital and Summer Capital led the funding round among other firms. The proceeds of the funding round were used to increase SOL accumulation.

Solana Company deepens its on-chain exposure as second largest treasury

Unlike other publicly traded firms adopting the model of holding digital assets on their balance sheets, Solana Company embeds its exposure directly into the structure of its listed shares meaning its investors gain indirect access to the performance of Solana through equity ownership. The model shifts price discovery from token markets to equity markets. The treasury firm now holds over 2.2 million SOLs making it the second largest publicly traded Solana focused treasury firm. 

Solana Company uses several strategies in regulating exposure for traditional investors including accumulation of SOL during market downturns and a public listed structure to compound Solana per share holdings over time. Joseph Chee, company CEO noted that the firm can buy aggressively when others are uncertain. The firm pointed out that the ongoing sell-off does not undermine the firms long-term strategy but its just a necessary adjustment as early investors exercise liquidity options.

Solana focused treasuries have now claimed 2.43% of the tokens total supply based on CoinGecko. Currently nine entities have accumulated over 13,541,583 SOLs with Forward Industries leading the chart with roughly 6.82 million SOL tokens representing approximately 1.24% of the total token supply. 

At the time of publication, Solana is currently trading at around $184.74, representing a 4.4% drop over the past 24 hours and roughly 7% over the past week. The token maintains the sixth position by a market capitalization of $100.91 billion according to CoinMarketCap data with an average volume of $5.85 billion.

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