Key Takeaways
- • FTX's bankruptcy estate is selling 41 million locked Solana tokens valued at $7.5 billion, priced at $64 per token, representing a 67% discount to market value at the time of sale.
- • Galaxy Asset Management was retained by the FTX estate in September 2023 to facilitate the token sales, allocating SOL to prospective bidders in a discrete manner while some investors raise external capital to participate.
- • Neptune Digital has publicly disclosed acquiring 26,964 locked SOL tokens at $64 per token, with 20% unlocking in March 2025 and the remainder unlocking monthly through 2028.
- • Galaxy Trading is raising investor capital to bid for locked Solana allocations at $64 per token with a 1% management fee, with BitGo serving as custodian and staking rewards distributed in line with purchases.
- • Strong institutional demand persists for the remaining token allocation, anticipated to become available in late April 2024, though some bidders experienced 13% allocation reductions when deals closed due to FTX estate discretion over final distributions.
Summary
The FTX bankruptcy estate has generated significant institutional interest in its sale of 41 million locked Solana tokens valued at $7.5 billion. According to nine sources close to the discussions, the estate priced these tokens at $64 each—a substantial 67% discount to the prevailing market value of SOL. Rather than liquidating tokens directly on open markets, the estate is selling the future rights to receive Solana when vesting periods expire, a structure that allows investors to acquire exposure to locked tokens at meaningful discounts while accepting duration risk.
Galaxy Asset Management, selected by the FTX estate in September 2023, is managing the allocation process. The firm was chosen for its ability to conduct token sales in a cost-effective and discrete manner. Galaxy is distributing allocations to prospective bidders, many of whom are actively raising capital from external investors to fund their acquisitions. This capital-raising mechanism has expanded the buyer pool beyond existing cryptocurrency funds to include institutional investors seeking exposure to discounted Solana at predetermined unlock schedules.
Neptune Digital has become the first organization to publicly disclose a purchase from the estate, acquiring 26,964 locked SOL tokens at the $64 price point. The tokens follow a graduated unlock schedule: 20% will unlock in March 2025, with the remainder unlocking on a monthly basis through 2028. Galaxy Trading has also emerged as an active participant, raising investor capital to bid for Solana allocations at the same $64 per token price. This fund structure carries a 1% management fee, with BitGo designated as custodian. Staking rewards will be distributed proportionally to investors based on their purchase amounts, though rewards themselves remain locked alongside the underlying tokens.
Some allocations have already closed, though two sources indicate that a meaningful portion of the 41 million SOL remains available for sale. Importantly, certain investors experienced 13% reductions to their agreed allocations upon deal closure, a consequence of the FTX estate retaining final discretion over token distributions. The estate is anticipated to release the next tranche of locked tokens in late April 2024, though this timeline remains unconfirmed. The strong institutional demand evident across multiple bidders underscores the significant arbitrage opportunity presented by the 67% discount to market value, despite the multi-year unlock schedule and associated duration risk.
Galaxy Asset Management, selected by the FTX estate in September 2023, is managing the allocation process. The firm was chosen for its ability to conduct token sales in a cost-effective and discrete manner. Galaxy is distributing allocations to prospective bidders, many of whom are actively raising capital from external investors to fund their acquisitions. This capital-raising mechanism has expanded the buyer pool beyond existing cryptocurrency funds to include institutional investors seeking exposure to discounted Solana at predetermined unlock schedules.
Neptune Digital has become the first organization to publicly disclose a purchase from the estate, acquiring 26,964 locked SOL tokens at the $64 price point. The tokens follow a graduated unlock schedule: 20% will unlock in March 2025, with the remainder unlocking on a monthly basis through 2028. Galaxy Trading has also emerged as an active participant, raising investor capital to bid for Solana allocations at the same $64 per token price. This fund structure carries a 1% management fee, with BitGo designated as custodian. Staking rewards will be distributed proportionally to investors based on their purchase amounts, though rewards themselves remain locked alongside the underlying tokens.
Some allocations have already closed, though two sources indicate that a meaningful portion of the 41 million SOL remains available for sale. Importantly, certain investors experienced 13% reductions to their agreed allocations upon deal closure, a consequence of the FTX estate retaining final discretion over token distributions. The estate is anticipated to release the next tranche of locked tokens in late April 2024, though this timeline remains unconfirmed. The strong institutional demand evident across multiple bidders underscores the significant arbitrage opportunity presented by the 67% discount to market value, despite the multi-year unlock schedule and associated duration risk.
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