Recep Gülcemal 
As mentioned a few weeks ago, SOL, or Solana, is not experiencing the same level of institutional pressure as ETH and BTC digital asset treasuries. Although it is not experiencing the same level of buying pressure, recent developments indicate that this situation is changing significantly.
Sharps Technology (STSS), a healthcare device company, announced that it had secured a $400 million investment through a private investment in public equity (PIPE) transaction. It added that it would use this investment, or fund, to establish a SOL treasury. Such a fund size is considered the largest SOL DAT.
In addition to the development of the SOL asset treasury, Alice Zhang, co-founder of the Jambo Web3 phone, has been appointed as the company’s new investment director. Co-founder James Zhang has also stated that he has taken on the role of strategic investment advisor.
Pantera Capital’s SOL Move
Pantera Capital made headlines with the news that it had raised $1.25 billion to create Solana DAT. In this context, The Information announced that the venture would be named “Solana.co”. The funding strategy initially involves a $500 million equity increase. Subsequently, 750 million warrants will be issued. Sharps Technology is also an investor in this venture. It has included eight different tokens in its investments: ENA, SUI, TON, SOL, BNB, HYPE, BTC, and ETH. It has stated that it has invested more than $300 million in these DATs.
Furthermore, according to a report by Bloomberg, alongside Multicoin Capital, Galaxy Digital and Jump Crypto are also aiming to raise $1 billion to create SOL asset reserves. Cantor Fitzgerald LP is taking the lead in these efforts. Considering all these reports, the investments amount to approximately 2.65 billion dollars. This equates to 14,095,744 SOL at a value of 188 dollars per coin, based on current figures.
Is it too early to get excited about SOL?
Although high investment amounts are mentioned, it may not be right to get excited about SOL too quickly. In such cases, there may not be an open spot demand for SOL relative to open markets. This situation can be said to depend entirely on how SOL is accumulated in DATs, i.e. asset treasuries. Where DATs get their SOL from is extremely important. Is it being acquired from the market, or is it being obtained through a locked equity swap? Finding answers to these questions is of great importance for SOL investments.
The exchange of Solana for equity also plays a role in making this asset fully tradable and liquid. This could create an equity surplus in the future. If the surplus is sold or redeemed, it could create selling pressure. Although uncertainty appears to persist, a $2.65 billion investment is not insignificant for SOL.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.
*DOES NOT CONTAIN INVESTMENT ADVICE*