This penny stock pivoted to Solana and Hyperliquid and lost 99.9%

A publicly-traded children’s tutoring company has reinvented itself three times over the past year, pivoting from online education to Solana treasury management, then AI datacenter operations, and eventually, HyperLiquid yield farming.

Unfortunately, it dwindled to a penny stock in the process.

Shareholders have paid for every cringeworthy bandwagon hop. Its stock is down 99.9% over the past 12 months.

KIDZ AI is a Nasdaq-listed edtech curiosity formerly known as Classover Holdings. In 2025, it offered some sort of online, K-12 afterschool program. As of yesterday, it’s planning to farm stablecoins in the Hyperliquid ecosystem. 

Every bizarre pivot arrived with a fresh press release, plenty of buzzwords, and a lower stock price.

Indeed, every single monthly candlestick over the past year is red.

Afterschool tutor becomes a ‘$900 million’ Solana bet

In the spring of 2025, the company discovered crypto. On May 1 of that year, during the momentary mania in digital asset treasury stocks, the company announced a $400 million agreement to fund a “Solana-centric digital asset treasury strategy.” 

One month later, it announced another $500 million in convertible notes from Solana Growth Ventures LLC, bringing the headline figure to “$900 million” for a company whose actual quarterly revenues were less than $1 million at the time.

CEO Stephanie Luo called the financing a “milestone” for the company. And investors briefly loved it. The day after that press release, the stock had rallied 132% within two trading sessions.

It would never again regain those highs.

By October, after months of decline, management was still doubling down. The company said it would start accepting Solana (SOL) for tutoring payments, and reported holdings of 57,793 SOL worth roughly $13 million. 

It chose words like “strengthens,” “reaffirms,” “commitment,” and “deepen” for a glowing press release. However, the stock kept sliding.

Sayonara Solana, aloha AI

Soon, its deeply reaffirmed commitment ended.

Three months ago, the company terminated its $400 million Solana “facility.” The digital asset strategy was no longer “accretive,” management said. 

Instead of honoring its commitment, the company’s capital would now flow into artificial intelligence and robotics. Luo framed the reversal as “commitment.”

A new commitment.

Soon, the penny stock executed a one-for-50 reverse stock split, a maneuver that distressed companies use to manufacture a share price back above Nasdaq’s $1.00 per share minimum bid requirement.

Pre-split, the stock changed hands around 10 cents.

The company also rebranded to KIDZ AI Inc. It announced a GPU partnership targeting up to $50 million in AI compute capacity and started talking about AI datacenters.

Its stock price kept falling.

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Penny stock pivot to Hyperliquid

On Tuesday, KIDZ AI unveiled yet another treasury overhaul, this time phasing out Solana in favor of “the Hyperliquid ecosystem and yield-bearing US dollar-pegged stablecoin strategies.”

Luo said Hyperliquid has “real usage” and “deep liquidity.”

Investors rendered their verdict immediately, selling the stock down over 10% within a day.

Buried beneath the bandwagon-jumping treasury theatrics is a company in genuine distress.

Its most recent quarterly filing carries a going-concern warning, flagging “substantial doubt” about its ability to continue operating. The company lost millions operating its dwindling business divisions.

The SOL stash that once shimmered above $13 million was worth less than $5 million at the end of the most recent quarter.

Three pivots shared one outcome for the penny stock. The K-12 tutoring company that became a Solana treasury that became an AI robotics datacenter partner that became a Hyperliquid yield farmer play now trades around 35 cents per share, down 99.9% over the past year.

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