Three giants raise $1 billion to set up Solana reserve fund

New $1 Billion Solana Reserve Fund

Solana, a Layer-1 blockchain known for its fast transaction speeds and low fees, has rebounded strongly from the FTX crash in 2022, when the token price fell below $10. Today, with a price of nearly $200 and a market capitalization of over $106 billion, Solana has become an attractive option for institutional investors thanks to its thriving ecosystem of DeFi, memecoins, and decentralized applications. The three participating firms – Galaxy Digital, Jump Crypto, and Multicoin Capital – all have extensive investment histories in Solana, from purchasing tokens from FTX assets to supporting projects in the ecosystem.

The main motivation for this plan appears to be to capitalize on Solana’s unique benefits, including staking returns (up to 8% per year) and the opportunity to partner directly with the Solana Foundation. With the trend of publicly traded companies increasingly accumulating cryptocurrencies as reserve assets – like MicroStrategy with Bitcoin – the three companies see the potential for Solana to become a strategic asset, not only based on its value growth but also on its role in shaping the future of blockchain.

Solana Fund Launch Mechanism

The $1 billion plan includes acquiring a publicly traded company (expected to be SOL Strategies, currently trading in Toronto and preparing to go Nasdaq) to transform into a Solana-focused digital treasury company. The money will be used to accumulate a large amount of SOL, creating a reserve fund that is more than twice as large as existing funds such as Upexi (2 million SOL, worth about $400 million) and DeFi Development Corp (1.29 million SOL, worth $240 million). The implications of this initiative include:

• The $1 billion fund will elevate Solana to the same level as Bitcoin and Ethereum as an institutional reserve asset, bolstering confidence in the blockchain’s scalability and real-world applications.

• The official backing from the Solana Foundation shows close coordination between developers and investors, facilitating ecosystem integration and development.

• Increased liquidity and value: Buying large amounts of SOL could reduce circulating supply, pushing prices up and creating buying pressure from the market, especially when Solana is hovering around the $200 resistance level.

• New financial model: Using a listed company to manage the fund opens a precedent for other institutions to adopt a similar model, combining traditional finance and cryptocurrencies.

Evaluation and Conclusion

Galaxy Digital, Jump Trading, and Multicoin Capital’s joint fundraising of $1 billion to establish the Solana Reserve on August 25, 2025 is a milestone, elevating Solana to a major institutional reserve asset. With support from the Solana Foundation and a public company acquisition strategy, this initiative not only strengthens Solana’s position but also accelerates the adoption of cryptocurrencies in traditional finance. However, to be successful, companies must overcome the risks of volatility, regulation, and centralization while ensuring the interests of both institutional and individual investors.

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