DeFi Development Corp increases Solana holdings by $77M, boosting treasury and staking for long-term growth amid growing institutional interest.
DeFi Development Corp, a Nasdaq-listed company, announced a major purchase. The firm acquired 407,247 Solana (SOL) tokens for about $77 million. This move increased its total Solana holdings to 1,831,011 tokens. At current prices, this is equivalent to the value of these tokens of about $371 million. A recent equity raise financed the buy. Besides, the company can buy an additional Solana of more than $40 million to use in the future alongside their treasury.
DeFi Dev Corp Boosts Solana Holdings by 29%
The purchase is a milestone to DeFi Development Corp. It increased its Solana by 29 percent relative to its prior balance of 1,420,173 tokens. This has resulted in the present company having one of the largest corporate Solana treasuries. The Solana-per-share (SPS) of the firm is 0.0864, or equivalent to 17.52 per share. This is based on approximately 21 million shares outstanding. Nevertheless, the number of shares might increase to 31 million, with including warrants of the equity raise. Nonetheless, the company anticipates that the SPS will remain over 0.0675 which will guarantee robust shareholder value.
Moreover, DeFi Development Corp will retain the new tokens in long-term. The tokens will be staked by different validators, such as the company’s own validators, Solana. This staking will produce passive money, which is native yield. Operating an independent validator infrastructure, the company increases its presence in the Solana ecosystem. It also discusses opportunities of decentralized finance (DeFi) to expand its influence.
Related Reading: Pantera Targets Solana Treasury With $1.25B SPAC Strategy | Live Bitcoin News
Meanwhile, competition in the Solana treasury space is heating up. Big Solana reserves are also possessed by other companies such as Upexi and SOL Strategies. Together, the total number of SOL that is held by public companies is more than 800 millions. What is more, Pantera Capital was in the news recently. To develop a Solana-based investment company, the company plans to raise 1.25 billion dollars. In the case of success, it may turn into the largest Solana treasury companies by transforming a publicly listed company into Solana Co. This is a sign of increasing institutional investor attraction to Solana.
DeFi Dev Corp Maintains $40M for Potential Further SOL Buys
There are however risks in the strategy of DeFi Development Corp. The company concentrates much on Solana and thus its fortunes are tied to the asset. In case Solana declines in price the valuation of the firm may also decline. Nevertheless, the fast-developing ecosystem of Solana promises analysts. It is being used in DeFi, NFTs, and payments. This means that there is an increased demand in Solana blockspace and validators which has the potential to favor companies such as DeFi Development Corp.
Finally, the acquisition of Solana by DeFi Development Corp of $77 million reinforces its stance in the crypto market. The firm is making a huge bet about Solana. Further purchases can come since there is still a pot of cash of about $40 million. At present, shareholders obtain first-hand exposure to the growth of Solana. With the current trend in crypto treasury, DeFi Development Corp is an entity to be followed.
