FTX to Release $1.57 Billion in Solana (SOL) Tokens: Market Impact & Institutional Sales

The insolvency estate of FTX is preparing to release a substantial portion of its remaining Solana (SOL) holdings. The planned distribution involves approximately 11.2 million tokens, valued at around $1.57 billion. This action is part of the ongoing restructuring process driven by escalating legal costs under Chapter 11 proceedings.

Details of the Token Release

The unlocked SOL tokens account for roughly 2.2% of the circulating supply, which currently stands at 488 million tokens. Further distributions are expected in the near future, with smaller batches scheduled for release—12,700 SOL in April and 73,700 SOL in May. Previously, these tokens were sold at a discount during private auctions to major crypto investment firms.

Institutional Sales and Key Transactions

According to creditor attorney Sunil Kavuri, FTX managed to sell a total of 41 million locked SOL tokens to institutional buyers through three separate auctions. Among the prominent buyers was Galaxy Digital, which purchased 25.5 million tokens at a price of just $64 each, significantly below the current market rate of $142. Other investors, including Pantera Capital and Figure, acquired notable amounts as well, with purchase prices ranging between $95 and $102 per token.

Market Implications

This token release is expected to have far-reaching consequences in the crypto market. By increasing the available supply of SOL, the decision might influence market prices and liquidity. Institutional participants appear to view this as a strategic investment opportunity, taking advantage of lower entry prices before the anticipated market adjustments occur.

These developments underscore the challenges FTX faces while under bankruptcy protection, as it navigates complex legal and financial obstacles. Market observers will be closely monitoring the ripple effects of these token sales and the timing of subsequent releases.