Nasdaq-listed firm DeFi Development Corp Nears 1M SOL Treasury Milestone
DeFi Development Corp. announced on Wednesday that its latest series of purchases has brought its Solana (SOL) treasury within striking distance of the 1 million token mark. The significant acquisition, involving $198 million in transactions since July 14, resulted in a treasury holding of 999,999 SOL tokens.
In an official statement released Monday, DeFi Development detailed that the purchases included standard spot buys, discounted locked SOL, and 867 tokens procured through staking rewards, validator revenue generation, and other on-chain economic activity since July 14.
The company highlighted its operational strategy: “All newly acquired SOL is being staked immediately, earning native yield while helping secure the Solana network,” according to a message posted on X on Monday.
The timing of the purchase appears fortuitous. Nansen data indicates that Solana experienced a notable 12% price surge by Wednesday, breaching the $202 threshold, directly following the completion of the $198 million buy. Over the preceding seven days alone, SOL’s price has appreciated by over 25%. This recent performance underscores speculation that the near-record treasury size might correlate with SOL’s price appreciation.
Financial Position Update
Turning to its financial status, DeFi Development Corp. reported raising $19.2 million net proceeds in July by issuing 740,000 shares of common stock. Consequently, the company still holds a pool of $5 million earmarked specifically for potential future SOL acquisitions, representing a noteworthy liquidity position.
Factoring in the current market price, this $5 million allocation currently suffices to acquire approximately 24,752 additional SOL tokens.
Strategic Focus Remains Solana
DeFi CEO Joseph Onorati, speaking during a June 25 episode of the Thinking Crypto podcast, emphasized the company’s strategic concentration. He stated DeFi Development has “no plans” to diversify into other cryptocurrencies within the “foreseeable future.” The rationale centers on SOL’s specific attributes: “We focus on Solana because of the yields… and the volatility,” Onorati explained, citing these factors as “the key ingredient” for the company’s treasury strategy success. He further reasoned that volatility “gets monetized” through convertible debt financing, ultimately benefiting shareholders.
Market Context: Other Public Firms Build SOL Treasuries
DeFi’s focus on Solana is not unique within the public markets. Earlier this month, Bitcoin miner Bit Mining declared a strategic pivot towards Solana, announcing plans to raise up to $300 million to amass a substantial Solana treasury. Separately, Hong Kong-listed tech investment firm MemeStrategy garnered attention in June by skyrocketing 28.5% after becoming the first publicly listed company in Hong Kong to invest in Solana, acquiring 2,440 tokens and pledging broader ecosystem support.
Tech Roots Beyond Crypto
DeFi Development Corp. (formerly Janover Acquisition Corp.) retains its origins as a technology investment vehicle. Its platform historically connected lenders and commercial property buyers using AI. The company initiated its foray into Solana with a smaller purchase of 2,858 tokens on April 8, 2024.
Despite the surging price of SOL correlating with the treasury build-up, DeFi Development’s stock price showed little direct reaction. The company’s shares fell 3.65% during regular trading on Monday before recovering slightly in after-hours trading.
