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- The Solana Foundation has endorsed the initiative, which would more than double the current largest SOL treasury held by Upexi i.e. 2 million SOL worth around $400 million.
- Additional firms, including DeFi Development Corporation and Bit Mining, have recently increased their SOL holdings, reflecting rising institutional demand.
Top industry players from the crypto space, including Galaxy Digital, Jump Crypto, and Multicoin Capital, have joined hands to raise a massive $1 billion to build Solana Treasury. As per the Bloomberg report, the strategy involves acquiring a publicly listed company and converting it into a digital asset treasury firm. The transaction is likely to close in early September.
Three Firms Join Hands to Build Solana Treasury
By citing anonymous sources, Bloomberg publication reported that three companies are working to establish the largest treasury dedicated to Solana (SOL). The report noted that the firms have appointed Cantor Fitzgerald as the lead banker for the initiative.
The plan involves acquiring a publicly traded company to transform it into a digital asset treasury firm focused on SOL. Bloomberg also reported that the Solana Foundation has endorsed the move, supporting the creation of the treasury.
A massive $1 billion in Solana Treasury would be double the size of the largest SOL reserve currently existing in the market. As of now, a supply chain management company dubbed Upexi holds the largest Solana treasury. On August 5, Upexi disclosed that its SOL holdings had exceeded 2 million tokens, valued at approximately $400 million based on current market prices, as reported by CNF.
Upexi stated that it would bring additional value for stakeholders via a staking yield along with discounted locked SOL tokens. Speaking on the development, Nick Ruck, director at LVRG Research, said:
“This influx of capital could drive upward pressure on Solana’s price by reducing supply and boosting market sentiment, while also attracting more developer activity and ecosystem investment through validated institutional endorsement”.
Additionally, on August 4, the DeFi Development Corporation announced that it had raised its Solana holdings to 1.29 million SOL, valued at approximately $240 million at current prices, making it the second-largest corporate holder of Solana tokens, as mentioned in our story earlier this month.
Rising Demand of SOL As A Treasury Asset
Earlier this year, Bit Mining, a Bitcoin miner, recently revealed a strategic move toward Solana, announcing on July 10 plans to raise $200 million to $300 million to establish a Solana token reserve. The Solana blockchain network has seen substantial growth in recent years, driven by its strong presence in DeFi and the surge of memecoin activity last year, positioning it as an attractive option for institutional investors.
Last week, the SOL price rallied all the way past $200 resistance amid strong bullish action. However, amid the broader crypto market correction, SOL has once again dropped to $196 today, with daily trading volume surging 85%, to more than $13 billion.
