DeFi Development Surges: Solana Treasury Approaches 1 Million SOL
DeFi Development Corp Approaches Million SOL Mark with $198 Million Acquisition
Major Purchase Boosts Treasury Holdings
DeFi Development Corp, a company listed on Nasdaq, is on the verge of reaching a significant milestone in its treasury, now just one token shy of holding one million Solana (SOL) after a recent acquisition valued at $198 million.
In a press release issued on Monday, the firm disclosed that it had acquired 141,383 SOL tokens between July 14 and July 20, bringing its total treasury to 999,999 SOL. This latest purchase comprised various elements, including spot buys, discounted locked SOL, and 867 tokens obtained through staking, validator earnings, and other blockchain activities.
The company emphasized that all newly acquired SOL tokens are being staked immediately, generating native yield while contributing to the security of the Solana network.
Positive Market Response
Following the announcement of this acquisition, Solana’s price surged by 12%, surpassing $202, according to data from Nansen. Over the past week, the cryptocurrency has experienced a remarkable increase of over 25%.
Future Acquisitions on the Horizon
DeFi Development Corp has reported raising $19.2 million in net proceeds this month through the issuance of 740,000 shares of common stock. The firm indicated that it still has $5 million available for additional SOL purchases, which at current market rates could allow for the acquisition of approximately 24,752 more tokens.
In a recent episode of the Thinking Crypto podcast, Joseph Onorati, the chairman and CEO of DeFi Development Corp, stated that the company has no immediate plans to diversify its investments into other cryptocurrencies. He explained that the choice of SOL for their treasury is based on its potential for native yield and volatility, which he believes are crucial for the success of treasury strategies, as they can be monetized for shareholder benefit through convertible debt financing.
Stock Performance and Market Trends
Despite the positive developments surrounding Solana and the recent acquisition, DeFi Development Corp’s stock saw a decline of 3.65% on Monday, closing at $23.52. However, it experienced a slight rebound in after-hours trading, reaching $24.55.
Growing Interest in Solana Treasuries
Other companies are also exploring the creation of Solana treasuries. For instance, bitcoin mining company Bit Mining announced on July 10 its strategic pivot towards the Solana ecosystem, aiming to raise up to $300 million to establish a Solana token treasury. Additionally, on June 16, tech investment firm MemeStrategy made headlines by becoming the first publicly listed company in Hong Kong to invest in Solana, acquiring 2,440 tokens and pledging support for the broader Solana ecosystem.
