What a $1 Billion Solana Treasury Play Would Mean for SOL

Three of the crypto industry’s most influential firms—Galaxy Digital, Jump Crypto, and Multicoin Capital—are in talks to raise a $1 billion treasury fund dedicated to buying and holding Solana.

The effort, which has the backing of the Solana Foundation, would be the largest reserve of its kind for the digital asset, an unnamed source told Bloomberg.

The source said the group has enlisted Cantor Fitzgerald as a lead banker for the transaction, which involves acquiring an unidentified publicly traded company.

This strategy of accumulating digital assets on corporate balance sheets is similar to Michael Saylor’s approach with Strategy and Bitcoin.

“I think this further adds to the compelling narrative that companies having a digital asset treasury is a prudent strategy,” Steve Gregory, founder of crypto trading platform Vtrader, told Decrypt.

He added that a Solana treasury makes strong financial sense, considering the network’s staking rate of over 7%, which is considerably higher than both a traditional treasury’s yield and Ethereum’s staking rate, typically 3% or lower.

Despite this bullish news, however, Solana has failed to react positively, and is down nearly 6% today, according to crypto price aggregator CoinGecko.

This indicates that the market is still reeling from the weekend Bitcoin whale sell-off, which has dominated investor sentiment and overshadowed positive fundamental news.

There’s evidence of the conflicting signals between the news and price action in futures market data.

On August 24, the aggregated open interest for Solana hit a record high of $6.34 billion, according to Coinanalyze data. Coupled with rising funding rates since early July, this suggests that speculative traders remain largely bullish on the asset’s long-term prospects.

The recent market crash confirms this speculative positioning, with liquidation data showing that the vast majority of forced closures were long positions.

Liquidations of long Solana contracts over the past two days totaled $22 million and $18 million on August 25 and 24, respectively, compared to just $6.41 million and $13.43 million in short positions, according to Coinanalyze.

While the possible treasury deal sets a powerful long-term precedent, Gregory said, its short-term impact is muted by broader market uncertainty.

“I think it’s reasonable Solana gets an ETF shortly,” he said. “However, what I think could have a much larger and compounding effect is having a good spokesman, already trusted by Wall Street, pushing that buy narrative.”

Gregory did caution that a potential Solana ETF “will not see the same inflows as Bitcoin and Ethereum,” tempering expectations.