Pantera Capital announces fund to buy discounted SOL tokens from bankrupt FTX. FTX reaches settlement with BlockFi. Restructuring and new funding prospects for FTX.
Recently, Pantera Capital made headlines with its announcement of a fundraising initiative aimed at acquiring up to $250 million worth of Solana (SOL) tokens. These tokens are to be acquired at a discounted rate from the bankrupt FTX exchange’s estate.
As reported by Bloomberg, Pantera is launching the Pantera Solana Fund to facilitate the purchase of SOL tokens from FTX’s holdings. The firm aims to secure the tokens at a discounted price of $59.95 per SOL, which represents a significant 57% reduction compared to the current market price of approximately $142 per token. Pantera asserts that the FTX estate holds approximately 41 million SOL tokens, with an estimated value of around $5.4 billion, making up 10% of the total Solana token supply.
It's worth noting that potential investors are required to commit to a vesting period of up to four years, during which they would be restricted from transferring the tokens. Additionally, the fund entails a management fee of 0.75% and a performance fee of 10%.
FTX’s Agreement with BlockFi
In a separate development, FTX, in collaboration with Alameda Research, has reached an 'in principle' settlement with BlockFi. A recent court filing dated March 6 at a New Jersey bankruptcy court unveiled this agreement, which is pending court approval. If approved, BlockFi stands to receive approximately $874 million, and all charges against FTX will be dropped.
Under the terms of the agreement, BlockFi will receive $185 million from FTX and $689 million from Alameda Research. The former amount represents the total value of customer assets held by BlockFi at the time of its collapse, while the latter is the sum of loans extended by Alameda. Additionally, the agreement includes a secured claim of $250 million for BlockFi once FTX’s reorganization plan is sanctioned.
Both BlockFi and Pantera are investors in Blockfolio, a portfolio company acquired by FTX in 2020. Consequently, Pantera Capital's exposure to FTX from the Blockfolio investment is limited, constituting approximately 2% of the firm’s total assets under management (AUM).
Restructuring Efforts and New Funding Opportunities
The sale of discounted SOL holdings from FTX to Pantera could potentially furnish the necessary funds for the FTX estate. This would enable liquidators to initiate repayments to investors of the defunct crypto exchange and compensate affected users. Notably, FTX is exploring alternative avenues to recuperate funds for creditors, having recently received authorization to divest over $1 billion in shares of the artificial intelligence company Anthropic.
Meanwhile, the Solana (SOL) token has witnessed significant price fluctuations, surging by 11.7% over the past 24 hours (estimate) to reach $142.45 and posting a weekly gain of over 10%, according to CoinGecko data.
The proposed Pantera Solana Fund seeks to leverage the discounted FTX holdings, offering a potentially enticing investment prospect amidst the restructuring endeavors of the FTX estate.