Galaxy, Jump, Multicoin Capital Tease $1B $SOL Bid with Solana Foundation Endorsement

Whispers of a new Solana Foundation-endorsed kingpin $SOL DAT (Digital Asset Treasury) are swirling behind closed doors.

All holders of a considerable amount of $SOL, Galaxy Digital, Jump Crypto, and Multicoin Capital are rumoured to be seeking a $1B raise to create the market’s biggest $SOL treasury company. Meanwhile, a newly confirmed Solana DAT intends to purchase discounted $SOL from the Solana Foundation.

What does the Solana Foundation’s endorsement of emerging DATs signal for the market, and when can we expect to see Solana’s Michael Saylor hit the TradFi media circuit? 

Solana Foundation Endorses $SOL DAT

Galaxy Digital, Multicoin Capital, and Jump Crypto are reportedly in talks to raise $1B to launch a Solana DAT. According to Bloomberg, the three firms have reportedly approached Cantor Fitzgerald LP as the lead investment banker to bootstrap the deal, which could see the group become the industry’s largest $SOL DAT. 

The launch of the collective’s $SOL-based digital asset treasury would require the group to initiate the takeover of a currently unidentified publicly traded company. 

While Multicoin, Jump, and Galaxy’s proposed Solana DAT is far from the first treasury company to accumulate the asset, the manner in which it’s being created signals a dramatic shift in the DAT market. Bloomberg reports that the Solana Foundation has endorsed the move, indicating that the non-profit is eager to see the creation of further $SOL-based DATs.

Based on a Letter of Intent signed between the Solana Foundation Sharps Technology, another emerging Solana DAT, it’s possible that the group may be entering into an OTC purchasing agreement with the Foundation.

Rumors of the formation of a large-scale Solana DAT were rife in markets in the days leading up to the announcement. Perhaps spurred by ‘buy-the-rumor’ bids, $SOL outperformed the wider market, including Ethereum on the day $ETH secured a new all-time high.

With the likes of Michael Saylor and Tom Lee advocating $BTC and $ETH, respectively, across TradFi media, the Solana faithful have been clamouring for their own champion.

Some admittedly cryptic responses from Multicoin Capital partner Kyle Samani suggest that he might be in line for the job. One of Solana’s earliest investors, Samani has been a devout supporter of Solana, and various Solana-based applications, since 2021.

Sharps Technology Joins $SOL DAT Arms Race

While attention is fixed on the budding DAT being formed by Multicoin, Galaxy, and Jump, new players are emerging in the $SOL accumulation race. 

Sharps Techonology is the latest zombie-stock-turned-crypto-treasury to join the Solana DAT market. Backed by a long list of private investors, including Pantera, RockawayX, and Arrington Capital, Sharps Technology has committed to selling $400M of common stock in a PIPE (Private Investment in Public Equity) deal.

As part of the deal, Sharps Technology has reportedly signed a non-binding letter of intent with the Solana Foundation, enabling them to purchase $50 million in $SOL at a 15% discount to a 30-day time-weighted average price.

Token sales of this nature are likely to be replicated by the Foundation-endorsed formation of the proposed Solana DAT led by Multicoin, Galaxy, and Jump Crypto. By broadcasting its willingness to sell discounted tokens, there’s an argument that the Foundation is inadvertently issuing an open invitation to rival DATs looking to boost their holdings.

Defi Development Corp Raises Additional $125M

As competition between Solana DATs ramps up, Defi Development Corporation has announced an additional equity raise worth $125M.

According to Strategic Solana Reserve data, Upexi remains the clear leader in the $SOL arms race, boasting 2M $SOL in AUM.

The slew of Solana DAT announcements to start the week indicates surging institutional interest in $SOL and points to continued market optimism. With speculators anticipating interest rate cuts alongside further $SOL accumulation announcements, traders are hopeful for a bullish Q4 to close what has been a historic year for the asset class. 

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