Mercurity Fintech will establish a Solana (SOL) focused digital asset treasury with the $200 million funding received from Solana Ventures Ltd.
Mercurity Fintech (MFH), listed on the NASDAQ, is preparing to make a large-scale investment in the Solana blockchain ecosystem. As part of the agreement made with Solana Ventures Ltd., the company aims to accumulate Solana (SOL), generate returns through staking and decentralized finance (DeFi), and invest in tokenized finance projects by providing $200 million in capital.
However, following the agreement, Solana Ventures LLC, a subsidiary of Solana Labs, announced that they have no connection to this funding agreement. The identity of the “Solana Ventures Ltd.” company mentioned by Mercurity has not yet been clarified. Mercurity has not yet made a statement regarding the issue.
Mercurity’s Chief Strategy Officer Wilfred Daye stated that the Solana move does not mean that the company has abandoned its Bitcoin investments, describing SOL and BTC as different investment vehicles. Daye stated, “While SOL generates income through staking, BTC is an interest-free asset. SOL is more manageable on DeFi, while managing BTC is challenging. While Bitcoin is like digital gold, Solana is like a high-yield bond, but with higher volatility.”
The Bitcoin plan continues
In a statement made last month, Mercurity announced plans to raise $800 million to create a long-term Bitcoin treasury. The company’s new Solana strategy is seen as an important part of the recently announced $500 million DeFi basket strategy. This strategy includes not only Solana but also cryptocurrencies such as Ethereum (ETH), XRP, Cardano (ADA), and Binance Coin (BNB).