Solana Treasury Firm’s Stock Plunges 7% Following Massive $4 Billion Purchase Commitment
Solana's treasury management arm just made waves—and not the good kind. Shares tanked 7% after announcing a jaw-dropping $4 billion allocation toward new acquisitions.
Market Mayhem
Investors clearly aren't thrilled about the aggressive spending spree. The timing? Questionable. The amount? Astronomical. Wall Street analysts are scratching their heads—though some crypto maximalists are calling it a 'power move.'
Behind the Numbers
Four billion dollars isn't pocket change, even for a crypto heavyweight. That kind of commitment signals either extreme confidence or sheer recklessness—depending on who you ask. Traditional finance folks are already rolling their eyes. 'Another day, another crypto firm pretending liquidity isn’t a thing,' one trader muttered.
What’s Next?
Will this bet pay off? Or is Solana's treasury team about to learn a very expensive lesson? Only time—and the market’s mood swings—will tell. One thing's certain: in crypto, even the biggest players aren’t safe from a good old-fashioned panic sell.
Solana treasuries gain ground
Forward’s aggressive accumulation aligns with a broader trend among companies integrating Solana into their treasury strategies.
Data from the Strategic Solana Reserve tracker shows that corporate holdings of the token recently climbed to 17.17 million SOL, worth more than $4 billion. These holdings represent nearly 3% of Solana’s circulating supply.
In an X post, Michael Marcantonio, Galaxy’s head of DeFi, argued that several firms are turning to Solana treasuries because they could outperform their Bitcoin and ethereum counterparts due to several structural advantages.
According to him, Solana’s higher volatility creates opportunities for financial engineering through bonds and warrants, which may accelerate token accumulation for treasury firms. Second, its staking yield, currently about 7-8% compared with Ethereum’s 3-4%, offers a compounding effect that steadily increases net asset value over time.
Marcantonio also pointed to Solana’s relative undervaluation, noting that despite its smaller market capitalization, the blockchain network processes more transactions and supports more users than Ethereum.
Considering this, he surmised that:
“If Solana treasury companies execute well, they can offer asymmetric upside (because NAV/share can compound both from treasury mechanics and from market repricing of SOL relative to ETH).”
