Galaxy Digital, Multicoin Capital, and Jump Crypto are seeking to raise about US$1 billion to purchase Solana.

The firms plan to use the funds to set up a digital asset treasury company by acquiring an unidentified publicly traded entity, with Cantor Fitzgerald as lead banker.

The Solana Foundation has reportedly endorsed the initiative.

If completed, the deal would be the largest Solana-focused treasury to date and is expected to close in early September.

Solana, the sixth-largest cryptocurrency by market value, dropped as much as 2.7% on Monday amid a broader drop in digital assets.

Multicoin and Jump have previously invested in the Solana ecosystem, while Galaxy Trading raised US$620 million last year to buy Solana from the FTX estate.

The project reflects a wider trend of cryptocurrency firms holding digital assets on their balance sheets through listed vehicles.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Altcoin treasury strategies are scaling beyond Bitcoin’s pioneering model

The proposed $1 billion Solana fund would be more than double the size of the current largest Solana treasury held by Upexi at roughly $400 million 1.

This represents a significant evolution from the treasury strategy pioneered by MicroStrategy, which holds about $70 billion in Bitcoin 1. While MicroStrategy proved the viability of crypto treasury holdings, this Solana initiative shows institutional investors are now applying similar strategies to altcoins at a larger scale.

The backing from three major crypto firms, Galaxy Digital, Multicoin Capital, and Jump Crypto, along with Cantor Fitzgerald as lead banker, demonstrates that the treasury model has matured enough for financial institutions to explore it across different cryptocurrencies 1.

The Solana Foundation’s endorsement of the effort further reflects institutional interest in applying treasury strategies beyond Bitcoin to other major blockchain networks 1.

2️⃣ Staking yields create new revenue dynamics for crypto treasuries

Solana’s staking rate of over 7% provides a fundamentally different value proposition compared to Bitcoin treasury strategies, which rely purely on price appreciation 2.