Galaxy, Jump, Multicoin Eye $1B Solana Grab — Is a SOL Supply Squeeze Coming?

According to the Bloomberg report, the transaction has received the backing of the Solana Foundation and is expected to close in early September. None of the firms involved have publicly commented on the talks.

Solana, currently the sixth-largest cryptocurrency by market capitalization, has staged a sharp rebound this year. After dropping to multi-month lows in April, SOL has more than doubled and now trades near $200, up 6.6% over the past 30 days.

The surge has been fueled by renewed network activity, rising developer interest, and a wave of corporate entities adding Solana to their treasuries.

Until now, the largest institutional holder of Solana has been Upexi Inc., a supply chain management company that pivoted in April to focus on building a SOL treasury. Upexi has accumulated more than 2 million tokens worth about $415 million at current prices.

Early in August, DeFi Development Corp expanded its Solana holdings by adding 110,000 SOL, worth about $22 million at the time, to its holdings. In July, the company closed a $122.5 million convertible debt raise led by Cantor Fitzgerald. Proceeds have been used to bolster its SOL position and expand operations.

Bitcoin mining firm Bit Mining recently announced plans to raise between $200 million and $300 million to create its own Solana reserve. However, that month, the company entered the market, purchasing 27,191 SOL for $4.5 million and launching its own validator to generate staking yields.

Against this backdrop, the proposed $1 billion purchase by Galaxy, Jump, and Multicoin would dwarf the competition, instantly establishing the largest Solana corporate treasury to date.

Bitcoin pioneered the model, most visibly through Strategy’s aggressive accumulation strategy that has built a $70 billion BTC reserve. Ethereum has seen similar momentum, with digital asset treasury companies accumulating around $20 billion worth of ETH.

Analysts say these vehicles have the potential to drive supply squeezes, tightening liquidity in spot markets and amplifying price movements.

For Solana, the creation of a billion-dollar reserve would add fresh momentum to a recovery that began after the collapse of FTX in 2022, when the token’s future was thrown into doubt.

Multicoin and Jump have both been active backers of Solana’s ecosystem, while Galaxy Digital previously helped raise more than $600 million to buy SOL from the FTX estate last year.

If successful, the deal could have market-wide implications. A billion-dollar Solana grab would represent a substantial portion of liquid supply, with potential knock-on effects for price volatility and staking yields.

Institutional Treasuries, Buybacks, and dApps Fuel Solana’s $208 Rally

Solana extended its rally this week, climbing 8.1% to $208 with daily trading volumes above $6.6 billion. At a market capitalization of $112.5 billion, the sixth-largest cryptocurrency is once again testing a major resistance level that could determine its next breakout.

Institutional interest continues to play a pivotal role. According to the Strategic SOL Reserve tracker, nine entities now collectively hold 6.05 million SOL, worth about $1.21 billion, representing 1.05% of the circulating supply.

The concentration is significant, with the top five holders, including Upexi, DeFi Development Corp, Mercurity Fintech, and iSpecimen, controlling 97.5% of tracked reserves.

Ecosystem activity further supports Solana’s momentum. Data shows that Solana-based decentralized applications generated over $27 million in revenue between August 18 and 24.

Axiom and Pumpdotfun dominated with over $18 million combined, representing two-thirds of the total.