Helius Medical Technologies launches $500M Solana treasury as shares surge 140%

Helius Medical Technologies has turn out to be the newest entrant within the altcoin treasury market with the launch of a $500 million company treasury for Solana.

In line with a Sep. 15 announcement, the Nasdaq-listed agency has priced an oversubscribed $500 million non-public fairness providing, with the proceeds earmarked for constructing a long-term Solana-denominated reserve.

These collaborating within the PIPE have been in a position to buy frequent inventory at $6.88 per share, together with stapled warrants which might be exercisable at $10.13 over a three-year interval. The deal additionally contains as much as $750 million in extra warrants, assuming full train, which may increase the overall capital influx to over $1.2 billion.

U.S.-based crypto asset supervisor Pantera Capital and Hong Kong-based fund supervisor  Summer time Capital led the providing, which is anticipated to shut on Thursday. Different individuals within the spherical embrace Massive Mind Holdings, Avenir, FalconX, Arrington Capital, Animoca Manufacturers, HashKey Capital, and a number of other different buyers energetic within the digital asset house.

“We imagine that Solana is a category-defining blockchain and the inspiration on which a brand new monetary system shall be constructed,” Dan Morehead, Founder and Managing Accomplice of Pantera Capital, mentioned in an accompanying assertion.

Morehead believes backing from the brand new treasury firm would “considerably improve institutional and retail entry to the Solana ecosystem and assist gasoline its adoption world wide.”

These days, Solana, which Morehead described as “the business’s most inexpensive, quickest, and most accessible community,” has emerged as one of many extra standard alternate options to the large two treasury belongings, Bitcoin and Ethereum. The recent wave of institutional demand has helped the (SOL) token respect in worth over the previous months, and as of press time, it was up roughly 80% over the previous yr.

Like the numerous public firms which have taken up crypto treasury methods these days, Helius plans to boost shareholder worth and generate extra worth by leveraging Solana’s staking and lending alternatives.

In contrast to Bitcoin, which Helius described as “non-yield-bearing,” the Solana community affords a 7% native staking yield. Nonetheless, Bitcoin stays the dominant company treasury asset, with greater than 190 publicly listed firms at present holding BTC on their stability sheets.

Amongst different plans, the corporate intends to scale its SOL holdings over the following 12 to 24 months by way of capital markets applications, whereas sustaining a conservative threat profile inside the Solana ecosystem.

In line with Joseph Chee, who’s at present the chairman of Summer time Capital and has beforehand served as the pinnacle of Funding Banking throughout Asia at UBS, the purpose of the brand new treasury car is to maximise “SOL per share.” Lee will lead the corporate’s administration group as the director and govt chairman, as soon as the providing closes.

Helius shareholders have discovered the treasury plan to be a welcome pivot, with the corporate’s inventory surging over 140% following the announcement.

SOL treasury race heats up

Helius Medical Technologies is now a part of a small listing of eight different public firms which have introduced similar strategies over the previous months. 

In line with data tracked by CoinGecko, DeFi Improvement Corp., previously recognized as Janover Inc., an internet market for the true property sector that pivoted right into a Solana treasury firm earlier this yr, stands as the biggest company holder of SOL with over 2.02 million tokens.

Carefully following is Upexi Inc., a Tampa-based Solana treasury firm, and Sharps Technology, a medical gadget and pharmaceutical packaging firm, each of which now maintain over 2 million SOL tokens of their treasuries.