DeFi Development Corp. Stock Rallies 17% Following SOL Purchase and Capital Raise Plans

DeFi Development Corp. (DFDV) stock surged 17% on Thursday after the company announced a $2.72 million Solana (SOL) purchase for treasury management.

SOL Purchase Details

The company acquired 17,760 SOL tokens at an average price of $153.10 per coin. This brings its total Solana holdings to 640,585 SOL, valued at approximately $98 million.

Management indicated long-term holding intentions and plans to stake the tokens to generate yield.

This purchase comes after the company announced ambitious plans to raise $1 billion for Solana investment in April, though this filing was subsequently withdrawn due to SEC compliance issues.

Stock Performance

DFDV shares closed trading at $23.80, up nearly 17% from previous levels. The stock has since gained another 0.8% during extended session trading.

Compared to a Wednesday intraday low of $18.47, DFDV has rallied 30% in just two days. Year-to-date, the stock has soared over 2,733%, though it’s down 33% from its $35.53 peak on May 21.

DFDV Stock Chart
DeFi Development Corp. stock price rally from intraday low. Source: Google Finance

The company reported a 30% YoY revenue decline in Q1 and a 15.5% margin contraction. In correspondence to shareholders, management emphasized its “capital structure designed to weather prolonged drawdowns.”

$112.5M Capital Raise

Wednesday saw a related development as the company announced a $112.5 million private placement, expected to close Monday. Proceeds allocation: $75.6M for a prepaid forward stock purchase, with remaining funds for general corporate use including SOL treasury funding.