Pantera Capital Raises Funds to Buy $250 Million Worth of Solana Tokens
Pantera Capital, a leading crypto firm with $5.2 billion in assets under management, has launched a fundraising campaign to acquire $250 million worth of Solana (SOL) tokens from FTX. The firm aims to purchase the tokens at a significant discount, offering 39% less than SOL’s 30-day average price or $59.95 per token. However, there is a condition attached to the deal: Pantera must commit to holding onto the tokens for up to four years following the sale.
Background: FTX’s Liquidity Crisis and Bankruptcy
In November 2022, FTX and its sister company, Alameda Research, faced a liquidity crisis that led to FTX’s collapse. FTX had provided loans to Alameda Research while its trading desk had borrowed funds without sufficient cash reserves to repay its lenders. Despite attempts to sell the company to Binance, the deal fell through, resulting in FTX filing for Chapter 11 bankruptcy protection and its founder, Sam Bankman-Fried, stepping down.
In September, a bankruptcy court granted permission for the sale of $3.4 billion worth of Bitcoin, Ethereum, and Solana from the FTX estate. However, weekly sales were limited to $100 million.
Pantera’s Plan: Acquisition of FTX’s Solana Holdings
According to marketing materials shared with Bloomberg, Pantera estimates that FTX still holds approximately 41 million SOL tokens, equivalent to around $5.8 billion at current prices. If these estimates are accurate, it means that FTX possesses approximately 7% of Solana’s total token supply and about 9% of the circulating supply.
Positive Reception from the Solana Community
The news of Pantera’s plan to acquire FTX’s Solana holdings has been well-received by the Solana community, with many expressing optimism about the potential impact on SOL’s price.
A tweet from Gumshoe (@0xGumshoe) highlighted Pantera’s reputation as a respected and influential hedge fund in the crypto ecosystem, stating, “Pantera is the ultimate hedge fund, the most respected of the crypto ecosystem by far.”
SOL’s Price Surge and Pantera’s Fundraising Success
Since FTX filed for bankruptcy, SOL has experienced a significant price surge. While it was trading at $17.84 at the time of FTX’s collapse, it dropped below $10 by the end of 2022. However, as of now, SOL has reached a two-year high of $142.51 and has gained 13% in the past day.
Bloomberg reports that Pantera has successfully raised funds for its acquisition plan but did not disclose specific figures. The venture requires a minimum investment of $25 million, with Pantera charging a management fee of 0.75% and a performance fee of 10%.
Hot Take: Pantera Capital’s Bold Move in Acquiring FTX’s Solana Tokens
Pantera Capital’s decision to raise funds and acquire $250 million worth of Solana tokens from FTX demonstrates its confidence in the future potential of Solana and its commitment to long-term investments in the crypto market. By purchasing these tokens at a discounted price, Pantera aims to capitalize on their potential value appreciation over the next four years.
This move also highlights Pantera’s status as a prominent player in the crypto industry and its ability to navigate challenging market conditions. The positive reception from the Solana community further reinforces the belief that Pantera’s acquisition could have a significant impact on SOL’s price.
As SOL continues to gain momentum and reach new highs, Pantera’s strategic move positions them as a key participant in Solana’s growth story. It will be interesting to see how this investment plays out in the coming years and whether it proves to be a lucrative opportunity for Pantera Capital.
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