Bloomberg reports that Galaxy, Jump, and Multicoin want $1 billion to start the Solana treasury company

According to Bloomberg, Galaxy Digital, Jump Crypto, and Multicoin Capital are in talks to raise $1 billion to start a Solana-focused digital asset treasury firm.

Galaxy Digital, Jump Crypto, and Multicoin Capital are in talks to raise $1 billion to set up a digital asset treasury firm to collect Solana. SOL -4.58%

, as reported by Bloomberg. According to the report, the goal is to acquire a publicly traded company and transform it into a digital asset treasury company. The deal is expected to close in the beginning of September. According to reports, the three companies have appointed Cantor Fitzgerald LP as the deal’s lead banker. According to the report, the initiative is also getting support from the nonprofit Solana Foundation, which is working to expand the blockchain network. The Block has sought clarification and additional feedback from Galaxy, Multicoin, Jump, Cantor, and the Solana Foundation.

According to Nick Ruck, director at LVRG Research, “This influx of capital could drive upward pressure on Solana’s price by reducing supply and boosting market sentiment.” Additionally, it could attract more developer activity and ecosystem investment through validated institutional endorsement. Dutzende of businesses have set up corporate crypto treasuries as a result of Michael Saylor’s strategy’s success. A growing number of businesses are diversifying into other altcoins, such as Solana, BNB, and XRP, despite the fact that the majority of these holdings are concentrated in bitcoin and Ethereum.

The Block’s data dashboard shows that around 3.44 million SOL are held by public Solana treasury companies, led by Upexi, which recently signed a $500 million credit agreement to buy more Solana. Because of its role in DeFi and the memecoin mania of last year, Solana has attracted a lot of attention in recent years, making it a popular target for institutional investors. According to The Block’s SOL price page, Solana is currently the sixth largest cryptocurrency worldwide with a market capitalization of $108.9 billion. It has increased by 268.8% in the past year and 7.7% in the past month to trade around $200.