TLDR
- DeFi Development Corp bought 17,760 SOL tokens for $2.7 million, expanding total holdings to 640,585 SOL worth $98 million
- The company’s stock price surged 17% on Thursday following the purchase announcement
- All purchased SOL tokens will be staked with various validators to generate yield as part of long-term strategy
- DeFi Dev Corp stock is up 2,733% year-to-date despite being down 33% from May peak
- The company is raising $112.5 million via private placements with proceeds going toward SOL purchases and corporate purposes
DeFi Development Corp announced Thursday it purchased 17,760 Solana tokens worth $2.7 million at an average price of $153.10 per token. This acquisition brings the company’s total SOL holdings to 640,585 tokens valued at approximately $98 million.
The Florida-based firm’s stock price jumped 17% to $23.80 following the announcement. After-hours trading saw an additional 0.8% increase to $24.
DeFi Development Corp positions itself as the first public company to make Solana the centerpiece of its treasury strategy. The company plans to hold the newly acquired tokens long-term and stake them to generate yield.
All purchased SOL will be staked with various validators, including the company’s own infrastructure on the Solana network. This approach allows the firm to earn native yield through staking rewards and validator fees while contributing to Solana’s decentralization.
Stock Performance Shows Strong Investor Interest
The stock has experienced extreme volatility this year. From Wednesday’s intraday low of $18.47, shares have gained 30% in just two days.
Year-to-date, DeFi Development Corp stock has soared 2,733%. However, it remains 33% below its May 21 peak of $35.53.
Based on the company’s last reported 14,740,779 shares outstanding, the current SOL-per-share ratio stands at 0.042 tokens. This represents roughly $6.65 per share using current SOL pricing.
Capital Raising and Corporate Strategy
On Wednesday, DeFi Development Corp announced plans to raise $112.5 million through private placements. The offering is expected to close Monday.
The company will use $75.6 million from net proceeds to fund a prepaid forward stock purchase transaction. Remaining proceeds will support general corporate purposes, including additional SOL purchases for its treasury.
In April, the company initially announced plans to raise $1 billion to invest in Solana. However, it had to withdraw its SEC filing in June after failing to submit a required management report by the due date.
For the March quarter, the company reported net revenue declined 30% year-on-year. Net profit margin fell 15.5% during the same period.
In a July 2 shareholder letter, management stated it aims to maintain capital flexibility and protect investors from short-term liquidation risks. The company said its balance sheet is structured to weather prolonged drawdowns and support long-term value durability.
SOL traded at $150.75 at the time of reporting, down 1.6% over the past 24 hours. The token faced resistance at $156 during early trading before settling near current levels.
