Digital Asset Pivot Sends Former Medical Tech Firm into Tailspin

The dramatic reinvention of Helius Medical Technologies into a digital asset treasury has triggered one of the most severe stock collapses in recent memory. The company, now operating as Solana Company, has seen its share value evaporate by more than 95% in a matter of months, plummeting from over $180 to approximately $6.

Despite successfully closing an oversubscribed private placement that raised over $500 million—a figure that could potentially expand to $1.25 billion through warrant exercises—the company's strategic shift has faced brutal market rejection. The pivotal moment came on October 20th, when management filed registration documents allowing investors from the private placement to resell their shares. This procedural step unleashed a massive selling frenzy.

Equity values responded immediately, with shares sinking 11% on the announcement and ultimately shedding about 55% of their market capitalization throughout the past week. The decline continued through Thursday, when the stock fell another 6.4% to settle at $6.25. This extends a devastating downward trajectory that began when shares collapsed from $182.75 on June 2nd to $9.76 just one month later.

Digital Treasury Strategy Presses Forward

Even as its stock market valuation disintegrates, Solana Company continues building its digital asset reserves. As of October 6th, the corporation's holdings included over 2.2 million SOL tokens alongside more than $15 million in cash reserves, representing combined assets exceeding $525 million.

Should investors sell immediately? Or is it worth buying Helius Medical Technologies Registered (A)?

The company's core strategy focuses on three pillars:
* Accumulating SOL tokens as primary treasury assets
* Generating staking yields exceeding 7% annually
* Deploying capital strategically during market disruptions
* Utilizing institutional custody services through Anchorage Digital Bank

To strengthen these operations, Solana Company is expanding its staking infrastructure through partnerships with Helius and Twinstake, both ranked among the top 25 validators within the Solana network. These collaborations are designed to enhance treasury management capabilities while providing specialized infrastructure for staking, governance voting, and financial reporting.

Survival Strategy or Speculative Gamble?

Executive Chairman Joseph Chee remains defiant amid the collapse, insisting the company will proceed with its resale registration plan despite extreme market volatility. Chee argues that the current stock price, trading below net asset value, actually presents an opportunity for investors to gain indirect exposure to Solana at a substantial discount.

Whether investors find this argument compelling remains questionable. The brutal mathematics of a descent from over $180 to $6 tells its own story. While the transformation into a digital asset treasury might offer long-term potential, shareholders are currently paying a severe price for this strategic pivot in the short term.