Shares of Brera Holdings dropped more than 19% on Wednesday after the company announced plans to shift its strategy toward becoming a Solana-focused digital infrastructure firm based in Abu Dhabi.
The publicly traded company, also known as Solmate, said its board approved a transformation that will prioritise blockchain infrastructure including institutional-grade staking and validator services on the Solana network.
“This transformation is the culmination of Brera’s strategic shift toward infrastructure opportunities we see in Abu Dhabi,”
Said Solmate chief executive, Marco Santori.
As part of the transition, the company will divest legacy assets including two soccer clubs in Mozambique and Mongolia, which it described as underperforming businesses.
Brera said capital freed from the sales will be redirected toward its Solana strategy, while the firm will retain its flagship Italian soccer club Juve Stabi.
The company also plans to implement a 10-for-1 reverse stock split after an April 7 shareholder meeting aimed at approving the new strategic direction.
The stock sell-off came as Ark Invest began trimming its stake in Brera earlier this week after previously accumulating a multimillion-dollar position in the Solana-focused company.
At the time of reporting, Solana price was $85.17.