FTX Estate Sells Majority of Solana Holdings to Galaxy and Pantera Capital in $1.9B Deal

The bankruptcy estate of FTX has offloaded a significant portion of its Solana ($SOL) holdings in a deeply discounted deal, raising as much as $1.9 billion. According to Bloomberg, the estate sold between 25 million and 30 million locked-up $SOL tokens to Galaxy Trading and Pantera Capital for $64 each.

This move comes after previous efforts by Pantera Capital to raise funds for discounted SOL purchases from FTX. Pantera sought to raise capital to acquire up to $250 million in SOL tokens at a target price of $59.95. Galaxy Trading recently raised a $620 million fund for the same purpose.

The sale represents a major development in the ongoing FTX bankruptcy proceedings. FTX held approximately 41.1 million SOL tokens, accounting for roughly 10% of Solana's circulating supply.

Terms of the Deal and Potential Impact

The $SOL tokens acquired by Galaxy and Pantera will remain locked up for a four-year period. This lock-up provision could significantly boost investor confidence in Solana and could attract investors who were previously hesitant due to concerns about the overhang of FTX's holdings. Additionally, the lock-up could contribute to price discovery by reducing circulating supply, potentially leading to a rise in the price of SOL if demand remains high or increases over a four-year period.