Shares of DeFi Development Corp. surged 17% on Thursday after the company revealed it had acquired $2.7 million worth of Solana as part of its aggressive crypto treasury strategy.
Key Takeaways:
DeFi Development Corp. shares surged 17% after announcing a $2.7 million Solana purchase. The company’s Solana holdings now total 640,585 SOL, worth roughly $98 million. DeFi Development Corp. plans to raise $112.5 million to support its Solana-focused strategy.The company said it purchased 17,760 SOL tokens at an average price of $153.10, bringing its total Solana holdings to 640,585 SOL, valued around $98 million, according to a Thursday press release.
DeFi Development Corp. stated it plans to hold the newly acquired Solana long-term and will stake the tokens to earn additional yield.
DeFi Development Corp. Shares Jump After Solana Investment News
Investors reacted positively to the announcement, with the stock (DFDV) climbing to $23.80 by the close of trading, and rising another 0.8% in after-hours trading to finish at $24, according to Google Finance.
The two-day rally has seen shares jump nearly 30% from Wednesday’s low of $18.47, although the stock remains 33% below its May peak of $35.53. Year-to-date, shares have skyrocketed over 2,700%.
The buying spree comes despite recent financial headwinds for the company.
In its March quarter report, DeFi Development Corp. posted a 30% drop in net revenue and a 15.5% decline in net profit margin compared to the same period last year.
In a July 2 letter to shareholders, management emphasized plans to keep capital flexible and protect investors from short-term liquidation risks, adding that its balance sheet is designed to withstand prolonged market downturns.
Earlier this week, the company announced plans to raise $112.5 million through private placements, expected to close Monday.
Of the proceeds, $75.6 million will go toward a prepaid forward stock purchase, while the rest will fund general corporate purposes, including further Solana purchases.
Although DeFi Development Corp. withdrew a separate $1 billion Solana investment plan last month following an SEC filing issue, the latest move underscores its continued commitment to expanding its crypto treasury.
Sol Strategies Doubles Down on Solana Treasury
DeFi Development Corp. is not the only firm betting beg on Solana.
Canadian digital asset firm Sol Strategies, already trading on the Canadian Securities Exchange, holds over 420,000 SOL tokens, positioning itself as a significant institutional player in Solana’s ecosystem.
Last month, the firm also filed to list its common shares on the Nasdaq Capital Market under the ticker “STKE” as it ramps up its U.S. expansion.
In its SEC filing, Sol Strategies emphasized its focus on Solana, citing the blockchain’s growing role in asset tokenization and digital infrastructure as key drivers for future growth.
The firm has also secured a $500 million convertible note facility earmarked for acquiring and staking additional SOL, further aligning its treasury strategy with Solana’s staking economy.
As a foreign private issuer, Sol Strategies will continue to follow Canadian governance practices, giving it flexibility compared to U.S. corporate rules.
The firm recently filed a $1 billion shelf prospectus in Canada, aiming to build financial firepower for Solana-focused initiatives.
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