Solana Company ( HSDT ) , the digital asset treasury firm formerly known as Helius Medical Technologies and backed by Pantera Capital, has moved ahead with unlocking shares for early investors in its $500 million PIPE round as the company’s stock trades below the initial purchase price.

The shares, sold in a private placement in September at $6.881 each, has become eligible for sale earlier than scheduled, the firm said in a Monday press release. HSDT shares have tumbled to around $6.50 following a steep three-session decline that wiped nearly 60% from its market value, including a 17% drop on Monday.

"'Ripping off the band-aid' is the approach we are confidently taking, while many other DATs are choosing to stall," the company posted on X on Monday.

"The pressure on our stock price that comes with the effectiveness of the resale registration statement will likely shake out weak hands, but we believe this will also establish a remaining foundation of committed long-term shareholders," Joseph Chee, executive chairman of the firm, said in a statement.

Private placement in a public equity deals, or PIPE in short, allow institutional investors to buy shares of public companies at pre-set prices, often at a discount. It has become a favored method among recently launched digital asset treasury firms for raising capital quickly to accumulate cryptocurrencies.

However, several firms saw their stock prices collapse when sale registration for PIPE investors went live, raising doubts about the structure's sustainability in crypto markets.

HSDT's stock surged above $25 following the PIPE deal before plunging over 70% as the digital asset treasury hype across the market fizzled out.

Read more: The Rise and (Mostly) Fall of the PIPE Model in Bitcoin Treasury Strategies