Pantera Capital Eyes $1.25B Increase to Create Solana Treasury Agency: Report – Decrypt

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 automobile 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 increase, adopted by $750 million by means of 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 internet asset worth. 

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

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 Growth Corp, and Sharplink Gaming, in response to the corporate’s blockchain letter.

Earlier this week, Pantera joined ParaFi Capital in backing Sharps Know-how, a Solana treasury automobile aiming to lift greater than $400 million.

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

DeFi Growth Corp, beforehand often called 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 price round $21 million.  

Classover, an edtech firm, introduced 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 Growth Corp have additionally steadily expanded their reserves by means of fairness raises. Canadian companies resembling SOL Methods and Torrent Capital, in the meantime, maintain $62 million and $6.4 million, respectively, per CoinGecko knowledge.

So far, the whole worth of public Solana treasuries stands north of $695 million, representing some 0.69% of SOL’s whole provide, in response to knowledge from CoinGecko.

Outsized holdings

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

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

“One entity controlling that a lot liquidity may distort how Solana trades,” Younger mentioned, pointing to the way it may end in “narrowing free float and doubtlessly growing 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 state of affairs the place one company stability sheet has disproportionate affect on the narrative.”