Key Takeaways
- • The FTX estate is liquidating 41 million locked Solana tokens valued at $7.5 billion, with Galaxy Asset Management appointed in September 2023 to facilitate sales at $64 per token.
- • Neptune Digital publicly disclosed the first acquisition of locked SOL from the estate, purchasing 26,964 tokens with a 20% unlock schedule beginning March 2025 and monthly unlocks through 2028.
- • Galaxy Trading is raising capital from investors to participate in the token allocation at $64 per token, with BitGo serving as custodian and a 1% management fee structure.
- • Heavy investor demand emerged due to perceived underexposure to Solana as its price appreciated during the sales process, with some allocations reduced by 13% upon deal closure due to FTX estate final approval authority.
- • Portions of the locked token inventory remain available for sale, with expectations for additional tranches to become available in late April 2024, though confirmations remain pending.
Summary
The FTX bankruptcy estate has generated substantial institutional investor interest in its $7.5 billion liquidation of 41 million locked Solana tokens. Galaxy Asset Management, selected by the estate in September 2023, is managing the allocation process as a cost-effective and discrete alternative to open-market sales. The tokens are being sold at $64 per unit to qualified bidders, a pricing mechanism that has attracted multiple fund managers and institutional participants seeking exposure to Solana at a discounted valuation.
Neptune Digital emerged as the first public acquirer, purchasing 26,964 locked Solana tokens from the estate. The company's unlock schedule demonstrates the illiquidity profile of these assets: 20% of holdings unlock in March 2025, with the remainder distributed monthly through 2028. This extended vesting structure reflects the original lock-up mechanics imposed on the tokens prior to FTX's collapse, creating both opportunity and execution risk for buyers.
Galaxy Trading has launched a dedicated fund to absorb locked Solana allocations, allowing external investors to participate at the $64-per-token entry price. BitGo provides custody services for the fund, which carries a 1% management fee. The fund structure includes provisions for staking rewards, though rewards remain subject to the underlying token lock-up schedule. According to sources, some investor allocations experienced 13% reductions upon deal closure, reflecting the FTX estate's retained authority over final distribution determinations.
The intensity of demand reflects a strategic miscalculation by some participants. As Solana's price appreciated during the sales process, investors recognized meaningful underexposure to the token, driving competitive bidding for available allocations. While portions of the initial 41 million token tranche have closed, the estate retains additional inventory anticipated to reach market in late April 2024, pending final confirmation and regulatory clearance.
Neptune Digital emerged as the first public acquirer, purchasing 26,964 locked Solana tokens from the estate. The company's unlock schedule demonstrates the illiquidity profile of these assets: 20% of holdings unlock in March 2025, with the remainder distributed monthly through 2028. This extended vesting structure reflects the original lock-up mechanics imposed on the tokens prior to FTX's collapse, creating both opportunity and execution risk for buyers.
Galaxy Trading has launched a dedicated fund to absorb locked Solana allocations, allowing external investors to participate at the $64-per-token entry price. BitGo provides custody services for the fund, which carries a 1% management fee. The fund structure includes provisions for staking rewards, though rewards remain subject to the underlying token lock-up schedule. According to sources, some investor allocations experienced 13% reductions upon deal closure, reflecting the FTX estate's retained authority over final distribution determinations.
The intensity of demand reflects a strategic miscalculation by some participants. As Solana's price appreciated during the sales process, investors recognized meaningful underexposure to the token, driving competitive bidding for available allocations. While portions of the initial 41 million token tranche have closed, the estate retains additional inventory anticipated to reach market in late April 2024, pending final confirmation and regulatory clearance.
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