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

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

Plans for the conversion had been first detailed in a report from The Data on Tuesday, which claimed that Pantera would start with a $500 million elevate, 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) corporations “throughout varied tokens and geographies” to generate yield and develop web asset worth. 

“An important component of a DAT’s success is the long-term funding advantage of the underlying token,” the corporate acknowledged.

Decrypt reached out to Pantera Capital to substantiate 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 with the corporate’s blockchain letter.

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

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

DeFi Improvement Corp, beforehand often known as Janover, an actual property financing platform turned AI providers agency, disclosed in July that it had doubled its holdings to greater than 163,000 SOL price 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 corporations equivalent to SOL Strategies and Torrent Capital, in the meantime, maintain $62 million and $6.4 million, respectively, per CoinGecko information.

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

Outsized holdings

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

“The impression is not going to be nearly measurement, however extra about symbolism,” Shawn Younger, chief analyst at MEXC Analysis, informed Decrypt. “This could give the market an impression that Solana is shifting past being a retail-driven chain to 1 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 danger.

“One entity controlling that a lot liquidity may distort how Solana trades,” Younger mentioned, pointing to the way it would possibly lead to “narrowing free float and probably growing volatility in periods of stress.”

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