Pantera Capital Eyes $1.25B Raise to Create Solana Treasury Firm: Report

Pantera Capital is reportedly in search of to increase up to $1.25 billion to convert a Nasdaq-listed firm into “Solana Co.,” a public car designed to accumulate Solana tokens as a treasury asset.

Plans for the conversion had been first detailed in a report from The Info on Tuesday, which claimed that Pantera would start with a $500 million increase, adopted by $750 million by warrants. 

It follows Pantera’s disclosure earlier this month that it has quietly deployed round $300 million into digital asset treasury (DAT) companies “throughout varied tokens and geographies” to generate yield and develop web asset worth. 

“A very powerful factor of a DAT’s success is the long-term funding advantage of the underlying token,” the corporate said.

Decrypt reached out to Pantera Capital to verify particulars of the deliberate conversion.

Pantera’s DAT portfolio spans eight cryptocurrencies, together with Solana, with stakes in Twenty One Capital, DeFi Development Corp, and Sharplink Gaming, in accordance to the corporate’s blockchain letter.

Earlier this week, Pantera joined ParaFi Capital in backing Sharps Expertise, a Solana treasury car aiming to increase greater than $400 million.

What a $1 Billion Solana Treasury Play Would Mean for SOL

Over the previous few months, a collection of smaller Nasdaq-listed companies have additionally pivoted into Solana treasuries.

DeFi Improvement Corp, beforehand referred to as Janover, an actual property financing platform turned AI companies agency, disclosed in July that it had doubled its holdings to greater than 163,000 SOL value round $21 million.  

Classover, an edtech firm, announced in June that it had bought about 6,500 SOL as step one in a plan backed by a $500 million convertible be aware program devoted to buying and staking SOL.

Upexi and DeFi Improvement Corp have additionally steadily expanded their reserves by fairness raises. Canadian companies resembling SOL Strategies and Torrent Capital, in the meantime, maintain $62 million and $6.4 million, respectively, per CoinGecko knowledge.

Up to now, the overall worth of public Solana treasuries stands north of $695 million, representing some 0.69% of SOL’s whole provide, in accordance to data from CoinGecko.

Publicly Traded Solana Treasury Company Wants to Stack Another $5 Billion in SOL

If the proposal strikes forward, Solana Co. alone would eclipse that determine.

“The impression won’t be nearly measurement, however extra about symbolism,” Shawn Younger, chief analyst at MEXC Analysis, instructed Decrypt. “This could give the market an impression that Solana is shifting past being a retail-driven chain to one with credible institutional sponsorship at scale,” he added.  

Nonetheless, the prospect of 1 agency holding such an outsized Solana reserve introduces a brand new layer of threat.

“One entity controlling that a lot liquidity might distort how Solana trades,” Younger stated, pointing to the way it may end in “narrowing free float and probably rising volatility in periods of stress.”

This is similar debate that is been noticed in Bitcoin treasury companies, Younger defined, whereby whereas corporations resembling Michael Saylor’s Technique have “introduced consideration and credibility,” they’ve additionally “created a situation the place one company steadiness sheet has disproportionate affect on the narrative.”