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Solana could see its biggest treasury bet to date with Galaxy Digital, Jump Crypto, and Multicoin Capital reportedly lining up a $1 billion plan.
As reported by Bloomberg, Galaxy Digital, Jump Crypto, and Multicoin Capital are looking to raise funds to accumulate $1 billion in Solana. The three intend to acquire a publicly traded entity, the identity of which is yet unknown, to create a digital asset treasury company.
The names involved here are all big in their respective corners. Galaxy Digital, led by CEO Michael Novogratz, manages about $9 billion in assets and has long positioned itself as a bridge between traditional finance and digital assets.
Jump Crypto is the Web3 development arm of Jump Trading, a firm with a focus on high-frequency trading strategies. The company is working on Firedancer, a new validator client for Solana aimed at boosting the network’s resilience and transaction capabilities. Multicoin Capital is a thesis-driven investment firm that invests in cryptocurrencies and blockchain companies. Notably, it has been a backer of SOL and its ecosystem since the early days.
The three firms have hired Cantor Fitzgerald LP as lead banker for the deal, according to the report. The effort has also won endorsement from the Solana Foundation and could be finalized in early September.
This is the latest example of companies exploring digital asset treasuries. Michael Saylor-led Strategy (formerly Microstrategy) popularized the idea with its Bitcoin accumulation, and today, not just BTC, but also altcoins are making their way to the balance sheets of firms.
If the $1 billion plan goes through, Galaxy and company would have created the largest treasury for Solana. At present, Upexi is the leading SOL treasury with about $400 million in holdings.
The cryptocurrency market has seen a shock during the past day, and Solana hasn’t been spared as its price has gone down by around 3%. Over the weekend, the coin had managed to surpass $210, but this drawdown has meant the asset is back at $197.
Below is a chart that shows how the asset’s recent performance has looked.
While SOL has witnessed this drawdown, it’s holding onto a chunk of its recent gains, which means it remains the best performer among the top coins with a weekly return of more than 8%.
That said, the decline may have changed things from a technical analysis perspective. Earlier, analyst Ali Martinez shared a chart showcasing the beginning of a potential breakout for SOL’s 12-hour price from an ascending triangle pattern. The price retrace has now meant that the coin is back inside the consolidation channel, possibly canceling out the bullish signal.
