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Investing.com -- Galaxy Digital Holdings Ltd (TSX:GLXY) stock fell 3.8% after Bloomberg reported that the crypto firm is collaborating with Multicoin Capital and Jump Crypto to raise approximately $1 billion for a Solana-focused treasury.
The three crypto heavyweights have reportedly engaged Cantor Fitzgerald LP as the lead banker for the initiative, according to Bloomber, citing people familiar with the matter. Their plan involves creating a digital asset treasury company by acquiring an unidentified publicly traded entity. If successful, this would establish the largest treasury dedicated to Solana tokens, more than doubling the size of the biggest existing Solana-focused reserve.
The news comes as Solana, the sixth-largest cryptocurrency by market capitalization, has more than doubled from its April low, though it remains significantly below its January peak. The proposed treasury would represent a major vote of confidence in the token’s future.
The decline in Galaxy Digital’s share price occurred amid a broader pullback in crypto-related stocks on Monday. Bitcoin-linked equities tumbled as the world’s largest cryptocurrency retreated from recent highs, trading around $111,000 after previously rallying on Federal Reserve Chair Jerome Powell’s dovish comments at the Jackson Hole symposium. Ethereum also declined, trading near $4,550 after briefly reaching $4,955.
Galaxy Digital , led by former hedge fund manager Mike Novogratz, has been expanding its presence in the crypto space through various strategic initiatives. This potential Solana treasury represents another significant move in the company’s efforts to establish itself as a leading institutional player in digital assets.
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