Pantera Capital aims to acquire $250 million worth of SOL tokens from the bankrupt FTX estate through the establishment of the Pantera Solana Fund, leveraging discounted rates and strategic market positioning.
Pantera Capital’s Strategic Move
Pantera Capital, a prominent cryptocurrency investment firm managing over US$5 billion in assets, has set its sights on a significant acquisition. According to marketing materials circulated to potential investors, Pantera is seeking funds for the Pantera Solana Fund, with the intention of acquiring up to $250 million worth of Solana’s (SOL) tokens from the FTX estate. This move presents a strategic opportunity for Pantera to capitalize on favorable market conditions and leverage the distressed assets of the bankrupt exchange FTX.
Targeting SOL Tokens at a Discount
Pantera’s proposal revolves around purchasing SOL tokens from FTX's assets, which have been grappling with bankruptcy. The firm aims to secure these tokens at a discounted rate of $59.95 each, representing a substantial 39% below Solana’s 30-day average price. The FTX estate currently holds approximately 41.1 million SOL tokens, valued at around $5.4 billion, constituting nearly 10% of the total Solana token supply.
Strategic Investment Fund
To facilitate this acquisition, Pantera plans to establish the Pantera Solana Fund, catering to large investors with a minimum investment threshold of US$25 million. Prospective investors would commit to a four-year vesting period, agreeing to purchase SOL at the discounted rate offered by Pantera. The fund structure entails a management fee of 0.75% and a 10% performance cut, aligning interests between the investors and Pantera.
FTX’s Bankruptcy Fallout
The initiative comes in the wake of FTX’s collapse and subsequent Chapter 11 bankruptcy protection filing in November 2022. The potential sale of SOL tokens from FTX’s assets would enable liquidators to commence repaying investors affected by the exchange’s demise. Notably, FTX and Alameda have reached an 'in principle' settlement with BlockFi, resolving disputes and paving the way for financial restitution.
Closing in on Fundraising Goal
Despite challenges, Pantera aims to finalize the Pantera Solana Fund by the end of February. While specific fundraising figures remain undisclosed, Bloomberg reports suggest that the firm has made significant progress securing capital for the venture. This strategic move underscores Pantera’s confidence in Solana's potential amidst its meteoric rise in the crypto market, with SOL posting a remarkable 614% increase in value this year.
By leveraging the Pantera Solana Fund, the firm aims to harness the potential of Solana’s ecosystem while offering lucrative investment opportunities to institutional investors.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
