Solana Company Moves Forward with Resale to Support HSDT Price Discovery, Stock Drops 12%

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The post Solana Company Moves Forward with Resale to Support HSDT Price Discovery, Stock Drops 12% appeared first on Coinpedia Fintech News

A Solana Treasury company has recently announced a bold step that sets it apart from other DATs.

Solana Company, formerly known as Helius Medical Technologies, has announced that it will move forward with making its resale registration effective, a process that lets early investors sell restricted shares on the open market. The company said that it’s playing “offense”, emphasizing its commitment to growth.

Instead of delaying its scheduled registration for the resale of shares purchased during the recent private placement, the company chose to move forward as planned, while similar firms are holding back amid market uncertainty. 

The company says is taking a “rip off the band-aid” approach, hoping that this will help create market equilibrium for HSDT and support better long-term price discovery.

What does this mean for HSDT?

With the resale registration statement now effective, HSDT will rank among the largest Solana DATs by effective market cap, making it an attractive option for institutional investors seeking exposure to Solana.

“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,” Executive Chairman Joseph Lee said in a statement.

The firm also clarified that if HSDT trades below its net asset value in the days ahead, that simply means investors have the chance to buy one dollar of Solana for less than a dollar.

Building the “Berkshire Hathaway of the Solana ecosystem”

The company plans to show how HSDT can actively accumulate Solana, buying more SOL per share than most investors could on their own. It aims to generate 7%+ yield through institutional-grade staking, not available to individual investors. It also plans to use the capital markets to acquire more Solana and deploy capital strategically during market dislocations.

“When the non-believers are flushed out, HSDT can continue to accrete Solana per share. We can buy aggressively when others are fearful. We believe we can compound Solana per share holdings through disciplined capital allocation,” Lee said. 

The team aims to build the “Berkshire Hathaway of the Solana ecosystem”, a vehicle built to grow shareholder value, maintain a strong balance sheet, and trade at a premium.

Lately, PIPEs (Private placement in a public equity deals), have become a popular way for new digital asset treasury firms to quickly raise capital and build cryptocurrency holdings. However, some firms saw their stock prices drop sharply once PIPE shares started trading, raising questions about whether the approach works long-term in crypto markets.

HSDT is down about 12% over the past day and is currently trading at $6.87. Over the past month, the stock has fallen roughly 60%. Earlier this month, Solana Company revealed that it has partnered with Coinbase, BitGo, and Anchorage Digital as custodians for its growing Solana (SOL) treasury.