Nasdaq-listed company DeFi Development Corp has launched a preferred stock offering, with the potential to raise up to $19.8 million. The company disclosed that this funds will be used for general corporate purposes, including working capital and the purchase of SOL. Management expects that the majority of the net proceeds will be invested in SOL.
The purpose of fundraising is directed towards SOL.
The purposes listed in the prospectus also include investments in other digital assets, strategic transactions, and growth plans, but no specific allocation ratios for each purpose are disclosed. The company's CEO, Joseph Onorati, stated that although the final use will be subject to the prospectus, the company expects to use most of the funds raised for purchasing SOL.
This means that DeFi Development is continuing its treasury strategy centered around SOL. The company is currently listed on NASDAQ, with the stock code DFDV, and has long adopted a practice of accumulating and pledging SOL.
The latest holding has risen to over 2.33 million coins.
The company disclosed last week that it purchased approximately 19,000 SOL at an average price of around $98.14, increasing its total holdings to about 2,333,432. Based on the figures provided in the text, the value of these holdings is estimated to be around $236 million.
This latest purchase was funded by the proceeds from selling its ZeroStack holdings. The company stated that these tokens will continue to be held as long-term treasury assets and will be deployed through staking and on-chain infrastructure.
- The latest purchase volume is approximately 19,000 SOL.
- Average purchase price of approximately $98.14
- Total position is approximately 2.3334 million SOL.
Operate validators and on-chain services simultaneously
In addition to directly holding SOL, DeFi Development also operates its own Solana validators to earn staking rewards and commission fees. The company also participates in decentralized finance projects within the Solana ecosystem.
The company previously stated that the performance of DFDV's stock price during that month and quarter outperformed that of SOL, due to factors such as leveraged exposure, stock liquidity, and treasury earnings. According to the company, if this preferred stock issuance is completed, it will provide additional funds for its continued increase in holdings of SOL.
Additional information:The company did not specify in the prospectus what proportion of the funds raised will actually be used to purchase SOL. The remaining funds may also be invested in operations, digital asset investments, strategic transactions, and growth projects.
