Solmate Invests $50M in Solana to Expand in the UAE

Solmate Infrastructure has made a major move to strengthen its work with the Solana blockchain. On October 14, the company said it bought $50 million worth of Solana (SOL) tokens directly from the Solana Foundation at a 15% discount. 

The deal supports Solmate’s plan to build a Solana-focused infrastructure in the United Arab Emirates (UAE). It also highlights growing institutional interest in the blockchain ecosystem.

Solmate Sealed a Major Deal During Market Turmoil

The $50 million Solana purchase was finalized during a period of high market volatility, showing the company’s confidence in Solana’s long-term potential. According to the company, the tokens will be used to power Solmate’s bare-metal infrastructure under the Solana Foundation’s “Solana By Design” program.

As part of the agreement, the Solana Foundation secured the right to nominate up to two directors to Solmate’s board. This new buy came after Solmate announced it had raised $300 million through a private placement to support its Solana-based digital asset strategy. 

This funding round was backed by Solana Foundation, Ark Invest, RockawayX, and investors from the UAE. Previously known as Brera Holdings, Solmate is building a model that combines holding and staking tokens with creating blockchain infrastructure. 

Ark Invest Becomes Solmate’s Major Shareholder

In a separate development, Ark Invest, a popular investment firm, has also taken a strong position in Solmate. The Cathie Wood-led company revealed that it now owns about 11.5% of the company’s shares. 

This backing from a high-profile institutional investor could strengthen Solmate’s credibility as it continues its expansion efforts in the UAE and other global markets.

This investment highlights Ark’s growing interest in blockchain companies that build real-world infrastructure instead of only focusing on digital tokens. 

After several previous purchases, the firm acquired $8.27 million worth of Bullish shares in September. This move further increased its exposure to both the crypto and tech sectors.

Solana Foundation Boosts Ecosystem with Discounted Token Sales

The Solana Foundation has been selling discounted tokens to selected partners throughout this quarter as part of its plan to strengthen the SOL ecosystem. 

These token sales are designed to give companies the resources they need to build new infrastructure, develop blockchain tools, and expand Solana’s global use. 

Industry experts say this strategy can speed up network growth by bringing more developers and projects onto the platform. However, some analysts warn that offering tokens at discounted rates could reduce the long-term value and potential rewards for early Solana investors who bought at higher prices.

Still, public company holdings of SOL have risen sharply. More than $3 billion is now held across corporate treasuries linked to the Solana network. At the time of writing, Solmate’s shares were down 6%, trading at $14.58, giving the company a market value of about $35 million. Even with the short-term drop, Solmate’s expanding role could make it a key part of Solana’s global growth.