Solana, one of the prominent cryptocurrencies, witnessed a significant surge of over 8% in its price on March 7, garnering attention from investors. Meanwhile, this rally follows reports indicating Pantera Capital’s ambitious plan to acquire a substantial amount of Solana tokens, worth $250 million, from the estate of bankrupt digital asset exchange FTX.

Notably, this development marks a strategic move within the crypto market landscape.

Solana Price Rallies As Pantera Plans To Buy $250M SOL

Pantera Capital, a renowned crypto-focused asset manager with assets totaling $5.2 billion, is in the process of raising capital from prominent investors. Meanwhile, this has sparked curiosity in the financial sector over the potential move of Pantera with the fund.

However, according to a Bloomberg report, the fund will be used to acquire deeply discounted Solana tokens from the estate of FTX, a digital asset exchange that declared bankruptcy. As per Bloomberg, the Pantera Solana Fund is seeking to secure funds for this endeavor, aiming to purchase up to $250 million worth of SOL tokens.

Meanwhile, Pantera’s proposal offers an enticing opportunity for investors, with the option to acquire SOL tokens at a discounted rate of 39% below the 30-day average price or at $59.95. However, this comes with a condition, i.e. investors must commit to a vesting period of up to four years.

Notably, this strategic move is designed to alleviate immediate pressure on Solana’s token price while providing liquidity to FTX’s estate for creditor repayment.

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Implications and Market Dynamics

The soaring trajectory of SOL over the past year, witnessing a staggering 600% increase, presents a lucrative opportunity for FTX’s estate to generate funds for creditor reimbursement. Notably, SOL’s current trading price is nearly quadruple its value at the time of FTX’s collapse in November 2022. Besides, the involvement of Sam Bankman-Fried, co-founder and former CEO of FTX, as a major supporter of the Solana network adds an intriguing dimension to this development.

Meanwhile, the timeline for Pantera’s fund closure was set for the end of February, with efforts to secure investments reportedly underway. However, specific details regarding the amount raised remain undisclosed.

In addition, the report showed that the investors keen to participate in this opportunity are required to commit a minimum of $25 million each. Besides, Pantera plans to implement a management fee of 0.75% and a performance cut of 10%, as outlined in their materials.

Solana Price

However, as of writing, the Solana price was up 8.50% and traded at $142.83, suggesting a strong confidence of the investors towards the crypto. Over the last 24 hours, the crypto has touched a high of $144.02 and a low of $126.03.

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The post Solana Price Rallies 8% As Pantera Plans To Buy $250M SOL From FTX appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am