Solana Company allows early investors to unlock PIPE financing round shares ahead of schedule, a certain exchange's stock price plunges 60%

Jinse Finance reported that digital asset treasury company Solana Company (HSDT) announced on Monday the early unlocking of $500 million PIPE financing round shares, which were sold in September at a price of $6.881 per share, allowing early investors to sell their shares ahead of schedule. The company described this move as a "rip off the band-aid" strategy aimed at building a long-term shareholder base. Following the announcement, HSDT's stock price has dropped to around $6.50, plunging nearly 60% over three consecutive trading days, with a 17% drop on Monday alone. PIPE financing (Private Investment in Public Equity) has become the preferred method for emerging digital asset treasury companies to quickly raise funds for purchasing cryptocurrencies. However, as several companies have seen their stock prices crash after the unlocking period, the sustainability of this model in the crypto market is being questioned.