DeFi Development Corp Raises $100 Million for Solana Treasury Strategy
DeFi Development Corp has recently announced plans to raise $100 million through a private offering of convertible senior notes. The funds will be used to strengthen its Solana-focused treasury strategy, as the anticipation for potential U.S. approval of Solana exchange-traded funds (ETFs) continues to grow.
The company revealed that a portion of the proceeds will be used to repurchase its own shares through a prepaid forward agreement with a note purchaser. The remaining funds will be allocated towards general corporate purposes, including acquiring more Solana (SOL) as part of its asset accumulation strategy.
This move by DeFi Development Corp marks the first publicly listed firm in the U.S. to pursue a Solana-based treasury model. The notes, which will mature in July 2030, will pay interest twice a year.
The offering of unsecured notes will be available to qualified institutional buyers under Rule 144A of the Securities Act. Buyers will also have the option to purchase an additional $25 million within 13 days of the initial issuance.
Conversion into company stock or cash will be allowed under certain conditions prior to January 2030. After that, holders will have the flexibility to convert the notes at any time before maturity, with the settlement method to be determined during pricing.
This fundraising initiative comes on the heels of a regulatory setback in June, which led to the withdrawal of a planned $1 billion registration filing. The Securities and Exchange Commission (SEC) deemed the company ineligible for the streamlined S-3 form due to a missing internal controls report in its annual filing.
Despite this setback, DeFi Development Corp remains committed to building a substantial SOL treasury, similar to strategies employed by companies holding Bitcoin. The aim is to drive long-term value through staking and price appreciation.
The company’s recent capital raise follows a 16% drop in its stock price on June 24. This move is seen as an effort to bolster its balance sheet and reassure investors amidst the growing interest in Solana-based investment products.
Recent ETF launches in the market have further fueled momentum. The debut of the SOL + Staking ETF ($SSK) by Rex Shares and Osprey on June 1 marked the first U.S. fund offering staking exposure by allocating a portion of assets to overseas Solana products.
Furthermore, the SEC’s approval of Grayscale’s Digital Large Cap Fund to convert into an ETF has added indirect exposure to Solana alongside other major cryptocurrencies.
As the SEC continues to evaluate various crypto ETF proposals, DeFi Development Corp’s strategic move positions it to benefit from potential institutional demand for Solana. The offering is still subject to final pricing and market conditions, with the transaction closing date yet to be disclosed.
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