$7.2 Billion Crypto IPO, $2 Billion Solana Buy Pressure & More

Welcome back!

This is J264G and this week I’ve got these titbits for you:

• IPO Jitters: Circle has formally filed for a $7.2 billion IPO.

• Stake & Rake: Solana treasury firms gear up for $2 billion SOL buy order.

• Policy Winds: Crypto options might soon come to 401(k) retirement plans.

Gold is grabbing headlines, but Bitcoin is quietly becoming the go-to asset for capital allocations.

Now, let’s jump right into this week’s newsletter!

Click on any underlined heading/hyperlink to learn more.

Spotlight

Stake & Rake

Echoing Michael Saylor’s playbook, a new generation of public companies is rapidly emerging, constructed entirely around crypto treasuries. 

But unlike Saylor’s pure-Bitcoin thesis, this emerging wave sees Solana (SOL) increasingly rivalling Bitcoin (BTC) as the crypto asset of choice. Prominent among these companies are Sol Strategies, DeFi Development Corp., Upexi, and Classover, each making significant bets by transforming their balance sheets from traditional assets into SOL treasuries.

The rationale behind these entities betting on Solana fundamentally stems from its underlying technological architecture. Unlike Bitcoin, which relies on a proof-of-work consensus mechanism, Solana operates on a proof-of-stake consensus mechanism. This distinction is crucial, as it enables Solana treasury firms to go beyond passive “buy-and-hold” strategies by staking their SOL holdings to generate rewards (yield) and actively operating validator infrastructure and staking services. Additionally, these firms are increasingly pursuing audits and certifications aligned with traditional financial standards—aiming to enhance credibility and attract institutional capital to scale both their SOL treasuries and validator operations. 

In short, Solana treasury companies benefit in three ways:

• from SOL’s price appreciation,

• from staking rewards,

• and from revenue generated through validator operations.

However, the success of this treasury model is not guaranteed. It inherently relies upon sustained appreciation in the value of SOL, effectively representing a leveraged wager on the growth and continued development of the Solana ecosystem. The narrative these firms pitch to investors rests upon the idea that Solana is uniquely positioned for exceptional future growth, fuelled by its scalability, low transaction costs, and rapid pace of innovation.

Recent trends seem to support this thesis. Solana has emerged as a leading blockchain for stablecoin use cases, underpinned by a significant increase in its stablecoin supply. Furthermore, payments infrastructure, decentralised finance, and decentralised physical infrastructure networks are all thriving within the Solana ecosystem—just look at 126 weeks of nonstop innovation in motion. Should this momentum persist, demand for SOL will logically increase, providing the necessary justification for these firms' strategic bets.

While MicroStrategy's Bitcoin-focused treasury model captured everyone’s attention, the rise of Solana-based corporate treasuries may redefine institutional crypto investing altogether and transform Solana from merely an intriguing Bitcoin alternative into the cornerstone of the new financial era.

Number Of The Week

Circle minted $1.75 billion USDC on Solana in May alone.

News Bites

IPO Jitters: Stablecoin issuer Circle has formally filed for an $7.2 billion initial public offering on the New York Stock Exchange, ending months of speculation and strategic posturing. Despite reporting solid financials in 2024—including $1.7 billion in revenue and $156 million in net income—Circle’s long-term outlook is clouded. Market share for its flagship USDC token is waning as Tether, PayPal, Stripe, and others expand their stablecoin offerings. More notably, Coinbase now earns more from USDC than Circle itself. Consequently, the IPO may serve as both a capitalisation event and a defensive manoeuvre amid rumours of acquisition interest from Coinbase and Ripple.

Clarity Act: In a move poised to recalibrate America’s approach to digital asset regulation, House Financial Services Committee Chairman French Hill has introduced the Digital Asset Clarity Act. The proposed legislation seeks to disentangle the longstanding legal ambiguity surrounding crypto tokens and their classification as securities. The act also attempts to address the jurisdictional jostling between the Securities and Exchange Commission and the Commodity Futures Trading Commission by establishing clearer regulatory contours.

Policy Winds: In a notable policy reversal, the U.S. Department of Labor has withdrawn its 2022 compliance release that previously discouraged fiduciaries from including cryptocurrency options in 401(k) retirement plans. The move aligns with a growing trend among federal agencies toward a more permissive regulatory stance on crypto exposure in retirement products.

Capital Formation: Echo has unveiled Sonar, a new product designed to facilitate public token sales. The launch reflects a rising demand for the speculative dynamism of the ICO era—albeit with a more structured, compliance-conscious approach.

Crypto IP: Mediawan Kids & Family has inked a partnership with Claynosaurz Inc., the creators of the popular Solana-based NFT series. The agreement paves the way for a co-produced animated series grounded in the Claynosaurz universe.

Deal Flow

When the Solana ecosystem moves, it moves fast.

We give capital allocators an unfair advantage: high-signal research, due diligence, and warm intros.  

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Caught In 4K

Weekly Take

Keks & Giggles

And that's a wrap!

You can reach me anytime over on 𝕏.

Talk soon!

J264G

_{DISCLAIMER
None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research. Lastly, please be advised that we discuss products and services from our partners from which our team members may hold tokens/equity.}