Raising $1.25 billion, the well-known cryptocurrency fund Pantera aims to acquire a U.S. stock company, targeting "Solana Treasury"

Cryptocurrency investment is moving from behind the scenes to the forefront, with traditional listed companies becoming new vehicles for digital asset allocation.

According to The Information on August 25, renowned crypto fund Pantera Capital is preparing an ambitious plan: to raise up to $1.25 billion to acquire a Nasdaq-listed company and transform it into a treasury company specializing in investing in Solana.

According to insiders, Pantera plans to complete this fundraising in phases, with the first round raising about $500 million, followed by an additional $750 million through warrants. After completing the investment, the listed company will be renamed Solana Co., specifically for the purchase and holding of Solana tokens.

This transaction is the latest manifestation of the current investment boom in Solana. As market expectations rise that the U.S. Securities and Exchange Commission may approve the Solana ETF in mid-October, several investment institutions are competing to lay out related investment tools.

Pantera was founded by former Goldman Sachs and Tiger Global Management trader Dan Morehead and currently manages about $5 billion in assets, making it one of the largest and oldest crypto asset management companies. The firm has become one of the most active investors in the crypto treasury stock sector.

Solana is an open-source, decentralized layer-one blockchain platform considered a strong competitor to Ethereum, with a network that not only processes transactions quickly but also has transaction fees far lower than Ethereum.

Pantera's Goal - "Solana Treasury"

According to media reports citing insiders, Pantera's specific operational method is to first raise $500 million in funds, then invest in this Nasdaq-listed company, which will issue new shares to the investor group led by Pantera. The cash obtained by the company will be used to purchase Solana tokens.

As part of the transaction, an executive from Pantera will join the company's board of directors to lead its Solana accumulation strategy. It is reported that international investors, including those from Asia, are negotiating to participate in this transaction, while Pantera itself plans to invest $100 million.

The specific identity of the listed company has not yet been disclosed, but according to the plan, the company will be renamed Solana Co. after completing its transformation.

An article from Wall Street Insight stated that the first publicly listed company with a Solana-centric treasury strategy, DeFi Development, has gained market recognition with its aggressive SOL accumulation strategy and strong staking returns. The company reported earnings per share of $0.84 and revenue of $1.97 million in the second quarter. As of August 11, DFDV held over 1.3 million Solana tokens, valued at nearly $250 million

The Investment Boom in Crypto Treasury Stocks

Pantera has become the most prolific investor in the crypto treasury stock space. According to previous disclosures, the company has invested over $300 million in more than 10 crypto treasury stocks this year, including Bitcoin investment vehicle Twenty One Capital, Ethereum investment vehicle BitMine and SharpLink, as well as Solana investment vehicle DeFi Development Corp.

The main risk for these companies is that the trading prices of crypto treasury stocks often exceed the underlying value of the cryptocurrencies they hold, as they provide a convenient investment channel for investors who cannot or do not wish to directly engage with cryptocurrencies. However, in recent weeks, many crypto treasury stocks have seen their valuations decline, with some even falling below the value of the cryptocurrencies they hold.

In response to this situation, some companies have begun to implement stock buybacks. Reports indicate that Ethereum treasury stock EthZilla announced on Monday a stock buyback plan of up to $250 million, while another Ethereum treasury stock SharpLink stated last Friday that it plans to buy back up to $1.5 billion in stock.

Intensifying Market Competition

Currently, at least two U.S. listed companies, Upexi and DeFi Development, have raised funds to purchase Solana, but the scale is far smaller than that of companies like Michael Saylor's MicroStrategy and Tom Lee's BitMine, which have raised billions of dollars to accumulate Bitcoin and Ethereum.

For example, MicroStrategy has a market capitalization of $98 billion, while Upexi's market capitalization is only $387 million, and DeFi's is $329 million.

According to Bloomberg on Monday, Multicoin Capital, Galaxy Digital, and Jump Crypto are also in talks to raise about $1 billion to create Solana treasury stocks. Kyle Samani, managing partner of Multicoin, which has long supported Solana, told The Information this month that the company is actively seeking to invest in Solana treasury stocks.

Risk Warning and Disclaimer

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