TLDR
- Galaxy Digital, Multicoin Capital, and Jump Crypto are raising $1 billion to create the largest Solana treasury with Cantor Fitzgerald as lead banker
- The fund would more than double the size of existing Solana corporate reserves, surpassing Upexi’s current $400 million holdings
- The Solana Foundation has endorsed this initiative, which plans to acquire a publicly traded entity for the treasury
- The transaction is expected to finalize in early September 2024
- SOL currently trades around $196, making it the sixth-largest cryptocurrency by market cap
Three major cryptocurrency companies are working together to raise $1 billion for Solana purchases. Galaxy Digital, Multicoin Capital, and Jump Crypto have selected Cantor Fitzgerald as their lead banker for this initiative.
The companies plan to create the largest corporate treasury focused on SOL tokens. This would involve taking over a publicly traded entity to establish the digital asset treasury vehicle.
The Solana Foundation has endorsed this effort. The foundation’s backing adds credibility to the proposed $1 billion fund.
Solana currently trades at approximately $196 per token. The cryptocurrency ranks as the sixth-largest by market capitalization according to CoinGecko data.
The token has gained 6.6% over the past 30 days. This recent price movement reflects growing institutional interest in the blockchain platform.
Current Solana Treasury Leaders
The proposed $1 billion fund would dwarf existing corporate Solana holdings. Currently, Upexi leads as the largest corporate holder with over 2 million SOL tokens.
Upexi’s holdings are valued at approximately $400 million at current market prices. The supply chain management company announced its SOL position surpassed 2 million tokens on August 5.
DeFi Development Corporation holds the second-largest corporate position. The company increased its Solana holdings to 1.29 million SOL tokens on August 4, worth about $240 million.
Bitcoin miner Bit Mining recently announced plans to shift toward Solana. On July 10, the company said it planned to raise between $200 million and $300 million for a Solana token reserve.
Background on the Companies
Multicoin Capital was an early Solana investor. The venture capital firm led a $20 million Series A funding round in 2019 that supported the blockchain’s initial development.
Galaxy Digital has previous experience with large Solana transactions. Last year, the company raised over $600 million to acquire SOL tokens directly from the FTX estate.
Jump Crypto operates as a division of Jump Trading Group. The trading firm served as the primary market maker for the now-defunct FTX exchange.
Jump Trading absorbed nearly $300 million in losses when Sam Bankman-Fried’s FTX empire collapsed in 2022. Despite this setback, the firm continues to show interest in Solana investments.
The transaction is expected to close in early September. The timeline suggests the companies are moving quickly to establish their treasury position.
SOL declined 4.5% in the past 24 hours during a broader market pullback. Bitcoin also dropped below certain price levels during this same period.
The proposed treasury would more than double the size of any existing Solana corporate reserve. This scale demonstrates the companies’ confidence in the blockchain platform’s future prospects.
