Galaxy Digital, Multicoin Capital, and Jump Crypto are in discussions with potential backers to raise approximately $1 billion for the acquisition of Solana tokens. This move would establish the largest dedicated reserve treasury in the digital currency space to date.

According to informed sources, the three companies have engaged Cantor Fitzgerald LP as the lead underwriter for this transaction. The consortium plans to form a so-called digital asset treasury company by acquiring a publicly listed entity, the name of which has not been disclosed, according to anonymous sources.

If the deal is finalized, these three major players in the cryptocurrency industry will jointly create an asset pool twice the size of the largest existing Solana reserve pool. Although Solana, currently the sixth-largest cryptocurrency by market capitalization, has more than doubled from its April low, it remains significantly below the all-time high set in January. Affected by the broader downturn in the cryptocurrency market, Solana fell nearly 4% on Monday.

According to insiders, the Switzerland-based Zug non-profit organization Solana Foundation has expressed support for this initiative, and the transaction is expected to be completed by early September. Galaxy, Multicoin, Jump, Cantor, and the Solana Foundation have all declined to comment.

Public information also shows that Upexi Inc. (UPXI.US), which shifted its focus to acquiring Solana in April of this year, has now accumulated over 2 million tokens, worth approximately $400 million.

Volatile Journey

Solana initially gained widespread attention due to strong endorsement from former FTX CEO Sam Bankman-Fried (now a convicted fraudster). When FTX collapsed in 2022, Solana once faced an existential crisis but later staged a strong comeback by becoming the blockchain of choice for meme coin issuers—these highly speculative tokens are specifically designed to capitalize on social media trends.

Multicoin and Jump have previously made significant investments in the blockchain ecosystem. According to earlier reports, Galaxy Trading raised approximately $620 million last year to acquire Solana from the FTX estate.

Inspired by Michael Saylor’s contrarian investment strategy (his company now holds Bitcoin worth approximately $70 billion), the trend of investing in cryptocurrencies through publicly listed entities has evolved into a collective wave of corporate balance sheet allocations to digital assets this year.

However, this new wave of cryptocurrency reserve creation has also raised warnings: any sustained market decline could trigger a chain reaction of forced sell-offs. Galaxy CEO Michael Novogratz stated earlier this month that this trend may have peaked, and new entrants could face a "tougher environment."

The cryptocurrency reserve treasury strategy does indeed drive price increases. Estimates suggest that digital asset treasury (DAT) companies focused on Ethereum have accumulated approximately $20 billion worth of the second-largest token. Ethereum broke through its nearly four-year all-time high last Friday, partly due to sustained purchases by these institutions.