DeFi Development Corp. plans to raise $20 million through a preferred stock offering to enhance its SOL holdings, now totaling 2.33 million SOL.
Overview
- DeFi Development Corp. is launching a preferred stock offering of 2.2 million shares at $9 each.
- Funds raised will primarily be used for acquiring additional SOL, as stated by CEO Joseph Onorati.
- The firm has recently increased its SOL treasury to approximately 2.33 million SOL and equivalents.
DeFi Development Corp., a company focused on treasury management within the Solana ecosystem, is preparing to raise nearly $20 million through a preferred stock offering. The initiative is intended to further enhance its holdings of SOL, the native cryptocurrency of the Solana blockchain.
The company, which trades on Nasdaq under the ticker DFDV, has adopted a strategy centered on accumulating and staking SOL. Onorati mentioned that while the proceeds from this offering will support general corporate purposes, a significant portion will be directed toward purchasing more SOL.
As outlined in a preliminary prospectus, DeFi Development is offering 2.2 million shares of Variable Rate Series C Perpetual Preferred Stock priced at $9 each. They are also seeking to have these shares listed under the ticker CHAD.
Following a recent acquisition of about 19,000 SOL at an average price of $98.14, the company now holds approximately 2.33 million SOL, valued around $236 million. This purchase was partly funded by selling a portion of DFDV’s ZeroStack position, with plans to retain these tokens as long-term assets while leveraging them for staking and other blockchain activities.
Onorati emphasized that the company aims to provide shareholders with leveraged exposure to SOL, highlighting the importance of trading volume, SOL holdings, and staking income in their strategy. He noted, "Our equity has become one of the most liquid avenues to express that view within the SOL DAT category, while our treasury continues to generate differentiated organic yield." He also expressed confidence that if SOL performs well, DFDV could significantly benefit from that performance.
With the offering, DeFi Development Corp. aims to secure additional resources to continue its expansion in SOL holdings, which have already outperformed SOL's performance both month-to-date and quarter-to-date, according to the company.
