Solana (SOL) experienced a notable 6% price increase to start the week, following the announcement of a new initiative involving three major players in the crypto sector: Galaxy Digital, Jump Crypto, and Multicoin Capital. This collaboration aims to establish a new Solana treasury.
$1.65 Billion PIPE Offering To Establish Solana Treasury
In a revelation made earlier on Monday, Forward Industries (FORD) disclosed its plans for a private investment in public equity (PIPE) offering, with commitments totaling $1.65 billion in cash and stablecoins.
This offering is being spearheaded by crypto-focused investment manager Galaxy Digital, Jump Crypto, and Multicoin Capital, all of which will provide vital capital for the new treasury fund. Financial advisor C/M Capital Partners will also participate in this venture.
By leveraging the expertise and resources of Galaxy Digital, Jump Crypto, and Multicoin, Forward Industries aims to generate increased on-chain returns and enhance long-term shareholder value through active participation in Solana’s growth.
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Michael Pruitt, CEO of Forward Industries, expressed his view about the initiative, stating, “Our strategy to build an active Solana treasury program underscores our conviction in the long-term potential of SOL and our commitment to building shareholder value by directly participating in its growth.”
As part of this initiative, Kyle Samani, co-founder and Managing Partner of Multicoin, is expected to assume the role of Chairman of the Board of Directors upon the closing of the PIPE.
Samani, who has been a long advocate of the Solana protocol, believes that the platform is often “misunderstood and undervalued,” stating:
Real economic value is being generated on Solana. An institutional-scale treasury can be deployed in sophisticated ways within the Solana ecosystem to create differentiated value and increase SOL per share at a faster rate than simply being a passive holder.”
Galaxy’s President and Chief Investment Officer, Chris Ferraro, along with Saurabh Sharma, Chief Investment Officer at Jump Crypto, are also anticipated to join as Board observers.
SOL Strategies Set For Nasdaq Debut
Mike Novogratz, Founder and CEO of Galaxy, expressed confidence in the initiative, stating that with the leadership of Samani, Ferraro, and Sharma, Forward Industries is poised to distinguish itself as a leading publicly traded entity within the SOL ecosystem.
Jump Crypto’s Sharma echoed this sentiment, expressing excitement about Forward Industries’ strategy centered on Solana. He emphasized the opportunity to offer investors access to innovative on-chain return sources that extend beyond traditional staking, leveraging Solana’s advanced decentralized finance ecosystem.
Notably, the new treasury company will join SOL Strategies. As reported by NewsBTC last week, SOL Strategies was the first Solana treasury firm to receive approval for listing on the Nasdaq under the ticker symbol “SRKTE.” Trading is expected to begin on Tuesday.
With the formation of the new treasury company, SOL’s price skyrocketed toward the key $215 line, outperforming its peers in the top 10 largest cryptocurrencies, including Bitcoin (BTC). However, SOL still trades 27% below the $293 record reached earlier this year.
Featured image from DALL-E, chart from TradingView.com
