Pantera Capital Raises Funds to Buy Discounted SOL Tokens Worth $250M from Bankrupt FTX Estate
In Brief
Pantera Capital is raising funds to acquire discounted Solana (SOL) tokens worth $250M from the estate of bankrupt crypto exchange FTX.
Asset management company Pantera Capital is in the process of raising funds from major investors to acquire discounted Solana (SOL) tokens from the estate of the bankrupt cryptocurrency exchange FTX. The company is currently in the process of seeking funds for the Pantera Solana Fund, which presents an “opportunity” to acquire up to $250 million worth of SOL tokens from the FTX estate.
In exchange for the option to purchase SOL at a discount of 39% below a 30-day average price or at $59.95, investors are required to commit a minimum investment of $25 million each. This entails the initial locking of SOL tokens, with a gradual vesting process extending over four years.
Pantera Capital also outlined a fee structure, including a management fee of 0.75% and a performance cut of 10%.
Pantera Capital’s proposal is set to provide a means for FTX liquidators to sell Solana gradually, preventing an immediate impact on the token’s price and freeing up funds for creditors. The estate currently possesses 41.1 million SOL coins, valued at $5.4 billion, representing approximately 10% of the total supply.
The fund closure was scheduled to be concluded by the end of February. By the specified deadline, the global venture capital firm Menlo Park Capital successfully secured some funding.
FTX’s Interest in the Solana Ecosystem
Launched in 2020, Solana serves as a competitor to the Ethereum blockchain and facilitates various cryptocurrency-centric applications. The network has experienced an increase in monthly active addresses, consistently surpassing 20 million over the last three months, marking a recovery from the subdued activity observed during the period following FTX’s bankruptcy.
SOL has experienced a substantial 650% increase in value over the last 12 months amid the overall growth of the cryptocurrency market. This surge presents an opportunity for the FTX estate to generate funds for creditor repayment, with the current token price nearly quadrupling since the collapse of FTX in 2022.
Apart from having substantial holdings of the SOL token, FTX and its affiliated company, Alameda Research, made significant investments in startups centred around Solana’s broader ecosystem. FTX’s venture arm, Solana Ventures, and Lightspeed Venture Partners jointly revealed a $100 million blockchain gaming fund in 2021, showcasing their commitment to supporting developments within the Solana ecosystem.
FTX is divesting a significant portion of its previous investments as part of the company’s efforts to liquidate assets and reimburse customers who encountered account access issues during the company’s collapse in 2022.
Recently, FTX obtained approval from the United States Bankruptcy Court to sell its shares in the AI startup Anthropic. FTX had previously invested $500 million in Anthropic in 2021, maintaining a 7.84 per cent stake in the company. “We are selling the Anthropic shares, as we are selling everything, and putting the money in the bank,” said Andy Dietderich, FTX attorney.
As Pantera Capital secures funds to acquire discounted Solana tokens from FTX’s estate, the move highlights the evolving landscape of asset management amid the cryptocurrency market’s growth and FTX’s strategic liquidation efforts.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
