Solana Company Unlocks $500M PIPE Shares Amid Stock Price Slump

Solana Company (NASDAQ: HSDT), formerly known as Helius Medical Technologies, has begun unlocking shares for early investors from its $500 million private investment in public equity (PIPE) round. The digital asset treasury firm, backed by Pantera Capital, announced the move in a Monday press release, signaling confidence despite a recent drop in share value.

The shares, initially sold in September at $6.881 each, became eligible for resale earlier than planned. However, HSDT’s stock price has slipped to around $6.50 after a sharp three-day decline that erased nearly 60% of its market capitalization, including a 17% fall on Monday.

Executive Chairman Joseph Chee acknowledged the near-term impact on price volatility, stating that “ripping off the band-aid” was the right approach. “The pressure on our stock price will likely shake out weak hands, but we believe it will leave us with a stronger base of committed long-term shareholders,” Chee said.

PIPE deals allow institutional investors to buy shares of public companies at a predetermined price, often discounted, to help firms raise capital quickly. The structure has become popular among digital asset treasury firms seeking to accumulate cryptocurrencies, but it has also drawn scrutiny. Many similar firms have suffered steep declines once resale registrations took effect, raising questions about the sustainability of PIPE funding models in crypto markets.

After the September deal, HSDT’s stock initially soared above $25 before plummeting over 70% as enthusiasm around digital asset treasuries cooled. Despite market turbulence, Solana Company’s proactive approach to unlocking shares reflects a strategic effort to stabilize its shareholder base and reinforce long-term investor confidence.