Pantera Capital, a prominent crypto-focused asset manager, is making moves to secure funds from major investors in order to purchase heavily discounted Solana (SOL) tokens from the FTX bankruptcy estate. The company is in the process of raising capital for the Pantera Solana Fund, with the goal of acquiring up to $250 million worth of SOL tokens at a significant discount. Investors would have the option to buy SOL at a price that is 39% below the 30-day average or at $59.95, but in return, they would need to commit to a vesting period of up to four years.
According to marketing materials obtained by Bloomberg in February, Pantera Capital aimed to finalize the fund’s closure by the end of the month. While specific details about the amount of funds raised have not been disclosed, a source familiar with the matter confirmed that the company managed to secure some investments by the deadline. FTX, which entered Chapter 11 bankruptcy proceedings in US courts in November 2022, holds 41.1 million SOL coins, valued at $5.4 billion based on Wednesday’s closing price. This represents approximately 10% of the total SOL supply, making it a significant opportunity for investors looking to capitalize on the discounted tokens.
Investor Requirements
Investors looking to participate in the Pantera Solana Fund must be willing to contribute a minimum of $25 million each. In exchange, they will receive initially restricted SOL tokens that will unlock gradually over a four-year period. Pantera Capital plans to implement a management fee of 0.75% and a performance fee of 10% for investors, as outlined in the materials provided to potential stakeholders. The proposal aims to provide liquidity for FTX liquidators, led by John J. Ray III, to sell SOL tokens gradually and generate funds for creditors without putting immediate pressure on the token’s market price.
The Support for Solana
Sam Bankman-Fried, the founder of FTX, has shown significant support for Solana and actively endorsed projects within its ecosystem. His enterprises have accumulated substantial amounts of SOL tokens from the Solana Foundation and Solana Labs. Bankman-Fried was also involved in the establishment of Serum, a decentralized exchange built on Solana’s blockchain, and has invested in various projects operating within the Solana network. Despite FTX’s bankruptcy, Bankman-Fried’s support for Solana remains unwavering.
The Solana Foundation had only approximately $1 million in cash or cash equivalents held on FTX.com when the trading platform halted customer withdrawals in early November. This amount accounted for less than 1% of the foundation’s total cash reserves, and there were no SOL tokens held in custody on the exchange. The foundation’s exposure to FTX’s bankruptcy proceedings was minimal, but the impact on the broader Solana ecosystem remains to be seen.
Pantera Capital’s plan to acquire discounted SOL tokens presents a unique opportunity for investors to capitalize on the distressed asset while supporting FTX’s liquidation process. The vesting period and investment requirements may deter some potential investors, but for those willing to commit, the potential returns could be significant. As the story of FTX’s bankruptcy continues to unfold, the implications for Solana and its stakeholders will become clearer in the coming months.