Galaxy Digital, a company specializing in digital asset investments, has significantly increased its holdings of Solana, purchasing $306 million worth in a single day. This follows their collaboration with Multicoin Capital, an investment firm, and Jump Crypto, a trading firm, in the creation of what’s being termed a crypto treasury company.
Data sourced from Lookonchain reveals that Galaxy acquired 1.2 million Solana tokens (SOL) from various cryptocurrency exchanges on Sunday. These tokens were subsequently transferred to Fireblocks, a specialized crypto custody provider.
This latest transaction extends Galaxy’s Solana buying activity, which has been ongoing since Wednesday. The company has reportedly invested over $1.5 billion in acquiring this particular token.
Announced on Thursday, Galaxy is collaborating with Multicoin Capital and Jump Crypto in a private placement round totaling $1.65 billion in Forward Industries. Forward Industries, originally a medical device manufacturer, is now transitioning its focus to amassing a substantial Solana portfolio among publicly traded entities, aligning with the growing trend of establishing crypto treasury firms.
Galaxy’s Solana Accumulation Exceeds 6.5 Million
Over the past five days, Lookonchain data indicates that Galaxy has acquired a total of 6.5 million SOL, which translates to an approximate value of $1.55 billion.
Analysis of on-chain activity reveals that Galaxy is actively purchasing Solana tokens in significant quantities, ranging from tens of thousands to hundreds of thousands at a time, with each transaction amounting to millions of dollars.
Whether Galaxy’s Solana purchases are directly related to its involvement with Forward Industries remains unclear. Galaxy Digital has not yet provided a statement regarding these transactions following a request for clarification.
Forward Industries’ Stock Experiences Surge
The stock price of Forward Industries (FORD) has seen a noticeable increase following the announcement of its shift towards Solana, rising by 16% over the five trading days leading up to Friday.
Year-to-date, the company’s stock has surged by an impressive 620%, closing at $36.10 on Friday, effectively reversing a previous multi-year decline.
However, the company’s financial reports for the June quarter indicated a 50% decrease in revenue compared to the same period last year, accompanied by a 329% reduction in its net profit margin.
Solana’s Growing Popularity
On September 3rd, Galaxy Digital achieved a milestone by becoming the first Nasdaq-listed entity to be tokenized on the Solana blockchain.
In a related development, DeFi Development Corp, a Solana treasury company, reported that its Solana treasury has surpassed the 2 million mark after acquiring $117 million worth of SOL within an eight-day period.
According to Mert Mumtaz, CEO of Helius, crypto treasury companies focused on Solana have collectively raised between $3 and $4 billion, with expectations for further growth in this area.
The total value locked (TVL) on the Solana network reached a record high of $12 billion earlier in the month, placing it second only to Ethereum in terms of TVL across its decentralized finance (DeFi) projects.
Data from CoinGecko reveals that Solana has increased in value by 17.3% over the past week and has experienced a gain of nearly 30% in the last 30 days.