DeFi Development Corporation Expands Plan to Purchase More SOL Tokens
The American publicly listed company DeFi Development Corporation is intensifying its plan to acquire more native Solana tokens (SOL), preparing to issue securities valued at up to $1 billion.
In documents submitted to the U.S. Securities and Exchange Commission (SEC), DeFi Development revealed that the funds will be used for “general corporate purposes, including the purchase of Solana (SOL).” The offering will include common stock and preferred stock, debt instruments, warrants, and composite units containing the above securities.
DeFi Development was originally a real estate fintech company known as “Janover.” The company announced its name change on April 22 to reflect its transformation into a cryptocurrency finance company designed for public market investors, with plans to change its Nasdaq stock symbol from “JNVR” to “DFDV” in the future.
On April 23, DeFi Development announced an increase in its holdings by acquiring 65,305 SOL, bringing its total holdings to approximately 317,273 SOL, valued at about $47.11 million, based on the current SOL price of approximately $148.5. The company also stated its intention to operate validation nodes on the Solana blockchain to earn staking rewards.
The new round of issuance by DeFi Development comes after significant leadership changes earlier this month. Joseph Onorati, a former executive from the U.S. cryptocurrency exchange Kraken, has taken over as CEO and chairman, while former Kraken engineer Parker White has been appointed as COO and Chief Investment Officer. The company has also hired John Han, a former executive from both Binance and Kraken, as CFO. Following its transformation, DeFi Development has adopted a Solana-centric financial strategy as part of its new development direction.
Increasingly, companies are emulating the strategy of American software company Strategy (formerly MicroStrategy) to purchase Bitcoin (BTC), beginning to incorporate cryptocurrencies onto their balance sheets, allowing traditional finance (TradFi) investors to gain indirect exposure to such assets.
Leading this wave of SOL acquisitions is SOL Strategies, a Canadian listed company co-founded by Leah Wald, former CEO of Valkyrie Investments. Recently, the company announced the completion of a $500 million convertible bond financing to expand its investment in the Solana network.