Galaxy Digital, Jump Crypto, and Multicoin Capital are reportedly seeking to raise $1 billion to establish the largest Solana (SOL) treasury to date, with Cantor Fitzgerald as the lead banker.
The plan involves acquiring a publicly traded company to create a digital asset treasury firm focused on SOL, with the deal expected to close in early September 2025. The Solana Foundation has endorsed the initiative, which would more than double the size of the current largest SOL treasury held by Upexi (approximately 2 million SOL, worth about $400 million).
This move signals strong institutional interest in Solana, potentially reducing circulating supply and boosting market sentiment, following the corporate treasury model popularized by Bitcoin and Ethereum.
The $1 billion Solana treasury initiative by Galaxy Digital, Jump Crypto, and Multicoin Capital has significant implications for the Solana ecosystem and could boost its growth in several ways:
Register for Tekedia Mini-MBA edition 19 (Feb 9 – May 2, 2026): big discounts for early bird.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register for Tekedia AI Lab: From Technical Design to Deployment (next edition begins Jan 24 2026).
The involvement of major players like Galaxy, Jump, and Multicoin signals strong institutional backing for Solana, enhancing its credibility as a leading blockchain platform. This could attract more institutional investors and projects to the ecosystem.
By locking up a substantial amount of SOL in a treasury (potentially exceeding 2 million SOL), the circulating supply could decrease, creating upward pressure on SOL’s price due to scarcity, assuming demand remains steady or grows.
The high-profile nature of this treasury, backed by reputable firms and a major investment bank like Cantor Fitzgerald, could drive positive market sentiment, encouraging retail and institutional investors to engage with Solana.
Following the success of Bitcoin and Ethereum treasuries (e.g., MicroStrategy), this move could inspire other companies to adopt SOL as a treasury asset, further integrating Solana into corporate finance strategies.
A publicly traded Solana treasury firm may face regulatory challenges, especially in jurisdictions with strict digital asset regulations. However, the involvement of established financial players suggests a structured approach to compliance.
Boost to the Solana Ecosystem
The treasury could fund Solana-based projects, decentralized applications (dApps), and infrastructure development, fostering innovation and expanding use cases (e.g., DeFi, NFTs, gaming, and payments). This could accelerate ecosystem growth.
Solana’s high-throughput, low-cost blockchain is already a hub for DeFi and NFTs. A large treasury could provide grants or investments to developers, attracting more projects and increasing transaction volume.
A significant SOL reserve could be used to support network operations, validator incentives, or staking, enhancing Solana’s security and decentralization. This could make the network more attractive to developers and users.
Backing from firms like Galaxy and Cantor Fitzgerald could open doors to strategic partnerships, expanding Solana’s presence in traditional finance, cross-chain integrations, and global markets.
By reducing circulating supply and signaling long-term commitment, the treasury could stabilize SOL’s price during market volatility and drive long-term appreciation, benefiting stakeholders across the ecosystem.
If the treasury’s SOL holdings are liquidated suddenly, it could lead to price volatility. The success of the treasury depends on effective management and strategic allocation of funds to high-impact projects. Other blockchains (e.g., Ethereum, Binance Smart Chain) may counter with similar treasury initiatives, intensifying competition.
Overall, this $1 billion treasury could significantly elevate Solana’s profile, drive ecosystem growth, and solidify its position as a top-tier blockchain, provided the initiative is executed strategically.
Metaplanet Buys Additional 103 Bitcoin Amid Grayscale Filing for An AVAX ETF
Tokyo-based investment firm Metaplanet has continued its aggressive Bitcoin acquisition strategy, recently purchasing 103 BTC for approximately $11.7 million, bringing its total holdings to 18,991 BTC, valued at around $2.2 billion.
This move aligns with their strategy to diversify reserves and hedge against Japan’s economic challenges, mirroring tactics used by companies like MicroStrategy. Metaplanet’s stock has surged by about 1,150% year-to-date, reflecting market confidence in its Bitcoin-focused approach. The firm also plans to use its Bitcoin reserves as collateral for acquisitions, signaling a broader strategy to integrate crypto into traditional finance.
Grayscale Files for Avalanche ETF
Grayscale Investments has filed an S-1 registration with the SEC to launch the Grayscale Avalanche Trust as a publicly traded ETF on Nasdaq. This follows their earlier filing with NYSE Arca for a multi-asset Digital Large Cap Fund ETF, which includes AVAX alongside BTC, ETH, XRP, and SOL.
The filing reflects growing institutional interest in altcoins, with the SEC’s review process for the multi-asset ETF potentially concluding by Q3 2025. This move could enhance accessibility for investors seeking exposure to Avalanche’s scalable blockchain ecosystem.
Metaplanet’s purchase reinforces the trend of corporations adopting Bitcoin as a treasury reserve asset, following MicroStrategy’s lead. This could inspire other firms, particularly in Asia, to diversify their balance sheets with crypto to hedge against fiat depreciation and economic instability in Japan, where high debt and a weakening yen persist.
The acquisition signals strong institutional confidence in Bitcoin, potentially boosting market sentiment. However, the $11.7M purchase is relatively small compared to Bitcoin’s market cap (~$1.3T), so direct price impact may be limited. Still, consistent buying could contribute to upward price pressure over time.
Metaplanet’s 1,150% stock surge reflects investor enthusiasm for its Bitcoin strategy. This could attract speculative capital to similar firms but also raises concerns about overvaluation risks if Bitcoin prices decline or market sentiment shifts.
Using Bitcoin as collateral for acquisitions could pioneer new financial models, blending crypto with traditional M&A strategies. However, this increases exposure to Bitcoin’s volatility, posing risks if market conditions deteriorate.
As Metaplanet integrates Bitcoin into its financial strategy, it may face increased regulatory oversight in Japan, where crypto regulations are stringent. This could set precedents for how corporations globally navigate crypto adoption.
Implications of Grayscale Filing for AVAX ETF
Grayscale’s filing signals growing institutional interest in altcoins like Avalanche (AVAX), potentially legitimizing layer-1 blockchains beyond Ethereum. An approved ETF could attract retail and institutional investors, increasing AVAX’s liquidity and market visibility.
An AVAX ETF could drive demand for the token, potentially boosting its price, currently around $27-$30. Historical ETF approvals (e.g., Bitcoin, Ethereum) have led to price rallies, though speculative hype could also increase volatility.
The ETF, alongside Grayscale’s multi-asset fund, offers investors diversified exposure to crypto without direct custody, lowering barriers to entry. This could accelerate capital inflows into the crypto market, particularly for Avalanche’s DeFi and NFT ecosystems.
The SEC’s review process, potentially concluding by Q3 2025, will test its stance on altcoin ETFs. Approval could pave the way for more altcoin-based products, while rejection might dampen enthusiasm for non-Bitcoin/Ethereum assets.
Grayscale’s move intensifies competition among asset managers (e.g., BlackRock, Fidelity) to offer crypto ETFs. This could spur innovation in crypto investment products but also pressure smaller blockchains to differentiate themselves.
Metaplanet’s Bitcoin purchases highlight corporate adoption, while Grayscale’s ETF filing reflects institutional efforts to bridge crypto with mainstream markets. However, regulatory hurdles, market volatility, and macroeconomic factors (e.g., interest rates, global economic stability) will shape their long-term impact.