Solana Price News: Helius Launches $1.25Bn SOL Treasury – $400 Next?

New day, new crypto treasury company. This is the new trend and more and more publicly traded companies are piling in.

Today, it was Solana’s turn again as Helius Medical Technology (NASDAQ: HSDT) partnered with Pantera Capital to sell a bunch of stock and raise $1.25 billion that will be invested in Solana (SOL).

In a press release published just hours ago, the neurotech company announced its pivot from healthcare to crypto in an instant.

The transaction is expected to close three days from now. After the money comes in, the new treasury strategy, led by a former C-level officer from the Swiss bank UBS, will progressively scale up its SOL position by executing at-the-market purchases of this altcoin and other convenient approaches that secure the most decent entry price.

A distinctive aspect of Helius’s strategy is that they will not change their ticker symbol – as most other Solana treasuries have opted to. A total of $500 million will be raised through the sale of common stock and another $750 million through the issuance of stock warrants.

The offering comes at a point when Solana seems to be playing catch-up with Ethereum (ETH) and BNB Coin (BNB) as it hit a 9-month high of $250.

Altcoin Season Has (Almost) Officially Started

Trading volumes for the token have surpassed the $10 billion mark in the past 24 hours and currently account for 8.5% of its circulating supply. Buying pressure has been strong but sellers showed up to mess with the party right after SOL got to $250.

Nonetheless, Helius’s announcements alongside this week’s expected rate cut from the Fed could provide the necessary fuel to push this token to $300 and even $400 during the cycle.

Altcoin Season Index – Source: CoinMarketCap

Altcoin season has officially started as CoinMarketCap’s Index tracking this phenomenon is just 4 points away from crossing the necessary threshold to welcome this stage of the market’s cycle at 75.

Crypto-focused treasuries are the latest strategy employed by publicly traded companies to raise capital.

A handful of other companies including SOL Strategies, Upexi, and DeFi Development Corp have launched similar initiatives funded by hundreds of millions in fresh capital that will ultimately flow to Solana (SOL). Thus far, not including Helius, these entities hold 1.2% of SOL’s total circulating supply according to data from CoinGecko.

This favors a bullish outlook for the token in the mid-term as these corporate treasuries will follow dollar-cost averaging (DCA) or some other sophisticated buying strategy to buy every dip as they need to deploy those massive amounts into the market.

Data from Charles Schwab indicates that more than 120 companies have engaged in this kind of strategy to boost their stock price and increase their business appeal.

Retail traders seem to be drawn to these instruments rather than buying SOL straight from a crypto exchange, possibly as they can do it through their existing individual retirement accounts (IRAs) or something like that.

SOL Could Rise to $400 Amid Rising Buying Pressure from Treasuries

Looking at the daily chart, we can see that the selling pressure rapidly pushed SOL lower upon hitting $250. However, there are plenty of support areas that could cushion this minor pullback to propel the token much higher over the next few days.

SOL/USD Daily Chart (Coinbase) – Source: TradingView

A key level to watch from a technical and psychological standpoint seems to be the $200 mark as it coincides with a long-dated trend line support. It is highly likely that institutional interest at this level will be high, which increases the odds of a strong bounce once the asset gets there.

If that’s the case, we could envision SOL rising to $275 first. Meanwhile, if a bullish breakout occurs right after, the significant buying pressure that will come from these treasuries could trigger some sort of FOMO that may end up pushing the price to $400 as everybody will be rushing through the door to secure the most decent entry price possible during the next leg up.