Pantera plans $1.25B Solana treasury vehicle called Solana Co.

Pantera Capital is planning to convert a publicly listed company into a Digital Asset Treasury Company (DAT) called Solana Co. The firm seeks to raise $1.25 billion to establish the public vehicle designed to accumulate Solana tokens as a treasury asset.

According to The Information, Pantera Capital plans to begin with a $500 million raise, followed by $750 million through warrants. The California-based firm argued that DATs can generate yield to grow net asset value per share, which results in more token ownership over time compared to just holding tokens.

Pantera Capital deploys over $300M in treasury companies 

Pantera Capital revealed in its disclosure earlier this month that it has already deployed over $300 million in treasury companies across different digital assets and countries. The firm has invested in DATs across the U.S., the UK, and Israel, with a token portfolio including BTC, ETH, SOL, BNB, TON, Sui, Ethena, and Hyperliquid.

The company also mentioned that the most important element of a DAT’s success is the long-term investment merit of the underlying token. According to Pantera’s blockchain letter, its DAT portfolio includes stakes in Twenty One Capital, DeFi Development Corp, Sharplink Gaming, and BitMine Immersion (BNMR).

The venture capital firm acknowledged that it first invested its Pantera DAT Fund into BNMR because it had a clear strategic roadmap. The company highlighted BNMR’s chair, Tom Lee’s long-term vision of acquiring 5% of the total ETH supply.

At the time of publication, on-chain data shows that the total value of public Solana treasuries is more than $695 million, representing around 0.7% of SOL’s total supply. Pantera’s initiative to establish Solana Co. to hold SOL as a corporate treasury asset would eclipse that figure.

Young also believes that the prospect of one company holding such an outsized Solana reserve would usher in a new layer of risk in the industry. He argued that it could alter how Solana trades in the case of narrowing free float and potentially increasing volatility.

The analyst also sees a similar scenario in Bitcoin treasury firms, such as Strategy, which have drawn attention and credibility for legitimizing digital assets. He also noted that such BTC treasury companies have created a scenario where one corporate balance sheet has disproportionate influence on the narrative.

The hedge fund company’s proposed fundraising is still in the early planning stages and subject to regulatory approval. Pantera Capital’s initiative follows a series of smaller Nasdaq-listed firms that have pivoted into Solana treasuries.

Nasdaq-listed companies pivot into Solana treasuries

Sharps Technology announced its raising over $400 million in a public equity transaction to stockpile Solana. The initiative is expected to close on August 28, with investments from ParaFi Capital and Pantera Capital. 

As previously reported by Cryptopolitan, the firm aims to become the largest Solana digital asset treasury, surpassing companies like Upexi and DeFi Development, which currently hold $370 million and $199 million SOL, respectively. Sharp Technology’s CIO, Alice Zhang, believes there’s an acceleration in global adoption of Solana as it continues to receive institutional support as a digital asset treasury strategy.

DeFi Development revealed in July that it had doubled its holdings to more than 163,000 SOL worth around $21 million. The firm launched a $125 million equity offering on August 25, priced at $12.50 per share. The company’s CEO, Joseph Onorati, said DeFi Development seeks to acquire as much SOL as possible in a way that compounds value per share for its investors. 

Classover also purchased about 6,500 SOL in June following its Solana accumulation strategy. The firm’s initiative follows its initial plan backed by a $500 million convertible note program dedicated to acquiring and staking SOL.

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