Solana News Today: Institutional Bet: $1 Billion Solana Treasury Challenges Market Stability

Galaxy Digital, Multicoin Capital, and Jump Crypto are collaborating on an initiative to raise approximately $1 billion to create what would be the largest corporate treasury dedicated to Solana (SOL). The trio has enlisted Cantor Fitzgerald LP as lead banker for the deal and is reportedly seeking to take over an unidentified publicly traded entity to form a new digital asset treasury company focused on Solana. This effort has received support from the Solana Foundation, a nonprofit based in Zug, Switzerland. If the deal is finalized, the combined Solana holdings would significantly exceed the current largest institutional reserves, which are held by companies such as Upexi Inc. and the DeFi Development Corporation.

The proposed $1 billion reserve would represent a major investment in the Solana blockchain, potentially accelerating its recovery from the aftermath of the FTX collapse in 2022. At present, Upexi Inc., which shifted its focus to Solana acquisitions in April, has amassed over 2 million SOL tokens, valued at roughly $400 million. Meanwhile, the DeFi Development Corporation has built a Solana treasury of 1.29 million tokens, worth approximately $240 million. Additionally, Bitcoin miner Bit Mining has announced plans to raise between $200 million and $300 million for a Solana token reserve, further illustrating the growing institutional interest in the asset.

Solana remains the sixth-largest cryptocurrency by market capitalization, according to CoinGecko, with a current price of around $200. The token has risen by 6.6% over the past 30 days. The proposed $1 billion investment would signal a strong vote of confidence in Solana’s blockchain infrastructure, particularly as it has become a preferred platform for memecoin issuers and decentralized finance (DeFi) applications. The move aligns with a broader trend among institutional investors to add digital assets to corporate balance sheets, a shift that has been amplified by the rise of crypto treasuries.

However, the growing concentration of Solana in institutional portfolios has also raised concerns among market observers. Some analysts have warned that a prolonged downturn could trigger a wave of forced selling, as companies manage liquidity and balance sheets under pressure. Galaxy CEO Michael Novogratz recently commented that the trend of forming crypto treasuries may have reached its peak, with new entrants potentially struggling to secure funding. Despite these risks, the continued accumulation of Solana by major players could provide upward pressure on its price, similar to the impact seen with Ether as a result of purchases by ether-focused digital asset treasuries.

The transaction is expected to close in early September. Should it proceed, the new Solana treasury could further solidify the cryptocurrency’s position within institutional portfolios and provide a benchmark for future digital asset investments.