Cathie Wood backed Solmate crashes 98% as board faces self dealing lawsuit

Cathie Wood backed Solmate has lost more than 98% of its value since completing a $300 million financing to transform a football holding company into a Solana treasury firm.

Shares of the Nasdaq listed company traded near $4.90 on Thursday, down from a split adjusted price of roughly $249 following the investment led by ARK Invest and Abu Dhabi based Pulsar Group.

The company was previously known as Brera Holdings and owned stakes in football clubs across Italy, North Macedonia, Mozambique and Mongolia. It announced its Solmate rebrand in September 2025 after securing an oversubscribed $300 million private placement backed by ARK, Pulsar, RockawayX and the Solana Foundation.

The funds were intended to build a Solana treasury and crypto infrastructure business in the United Arab Emirates. Solmate now holds about 2 million SOL, but the token has fallen roughly 50% over the past year.

The company warned in its annual filing that its financial position had become highly dependent on the price and liquidity of SOL after investing a significant portion of the financing proceeds in the token.

RockawayX accuses board of self dealing

RBCH, a company affiliated with RockawayX founder Viktor Fischer, filed a lawsuit in New York accusing Solmate’s officers and directors of breaching their fiduciary duties and using company resources to strengthen their control.

RBCH holds about 22.7% of Solmate’s parent company after committing $50 million to the financing.

The complaint alleges that board members Ron Sade and Keren Maimon acquired 2.3 million new shares at $4.97 each, diluting existing shareholders by roughly 20%. The transaction came shortly before the board rejected an acquisition proposal that valued shares at $7.19.

RockawayX also alleged that insiders sold shares above $33 after the financing closed while other investors remained unable to sell their holdings. The lawsuit further challenges advisory agreements and compensation packages linked to company directors.

Solmate has rejected RockawayX’s claims, arguing that the dispute stems from a failed business transaction. The company previously sued RockawayX and Fischer in Delaware, alleging they provided misleading financial information during negotiations over a proposed acquisition.

Solmate unwinds its football business

Solmate has largely dismantled the football portfolio that formed its original business. Its teams in Mozambique and Mongolia were discontinued, while its stake in Italian club Juve Stabia was sold for €1 plus liabilities.

The company recorded a net loss of about €378,000 in 2025. It also completed a one for ten reverse stock split in May to regain compliance with Nasdaq’s minimum bid price requirement.

Several executives and directors have departed during the turmoil. Economist Arthur Laffer and RockawayX founder Viktor Fischer resigned from the board in April, while former chief executive Marco Santori was terminated later that month.

The dispute is escalating ahead of Solmate’s annual shareholder meeting on June 26. RockawayX is seeking to prevent the recently issued shares from being used in the vote and wants the court to reverse the transaction.