TechFlow news, October 21 — According to CoinDesk, digital asset treasury company Solana Company (HSDT) announced on Monday the early unlocking of shares from its $500 million PIPE financing round sold in September at $6.881 per share, allowing early investors to sell their stock ahead of schedule. The company described this move as a "rip-the-band-aid" strategy aimed at building a long-term shareholder base. Following the announcement, HSDT's stock price dropped to around $6.50, plunging nearly 60% over three consecutive trading days, with a 17% decline on Monday alone. PIPE financing (Private Investment in Public Equity) has become the preferred method for emerging digital asset treasury companies to quickly raise capital to purchase cryptocurrencies, but as multiple companies have seen their stock prices collapse upon unlocking, the sustainability of this model in the crypto market is now being questioned.
Risk Disclosure: This website's content is not investment advice and offers no trading guidance or related services. Per regulations from the PBOC and other authorities, users must be aware of virtual currency risks. Contact us / support@techflowpost.com ICP License: 琼ICP备2022009338号
