DeFi Development Corp Aims to Raise $100 Million for Solana Treasury Amid ETF Anticipation

DeFi Development Corp has announced its intention to raise $100 million through a private offering of convertible senior notes. This move is part of a broader strategy to bolster its Solana-focused treasury as anticipation builds for potential U.S. approval of Solana exchange-traded funds (ETFs). The proceeds from this fundraising effort will be allocated in two main areas: repurchasing the company's own shares through a prepaid forward agreement with a note purchaser, and acquiring more Solana (SOL) as part of its asset accumulation strategy.

The notes, which will mature in July 2030, will pay interest twice a year. They will be offered to qualified institutional buyers under Rule 144A of the Securities Act, with buyers granted an option to purchase an additional $25 million within 13 days of the initial issuance. Conversion into company stock or cash will only be allowed under certain conditions prior to January 2030. After that, holders can convert the notes at any time before maturity, with the settlement method determined during pricing.

This fundraising initiative comes on the heels of a regulatory setback in June, when the firm was forced to withdraw a planned $1 billion registration filing. The Securities and Exchange Commission (SEC) deemed the filing ineligible for the streamlined S-3 form due to a missing internal controls report in its annual filing. The original filing, submitted in April, aimed to raise capital to build a substantial SOL treasury, similar to strategies used by companies holding Bitcoin to drive long-term value through staking and price appreciation.

The company’s latest capital raise follows a 16% drop in its stock price on June 24, indicating an effort to bolster its balance sheet and reassure investors as interest in Solana-based investment products grows. Recent ETF launches have added momentum to the market. On June 1, Rex Shares and Osprey debuted the SOL + Staking ETF ($SSK), the first U.S. fund providing staking exposure by allocating 40% of assets to overseas Solana products to comply with regulatory requirements. One day earlier, the SEC approved Grayscale’s Digital Large Cap Fund to convert into an ETF, adding indirect exposure to Solana alongside Bitcoin, Ethereum, XRP, and Cardano.

As the SEC considers multiple crypto ETF proposals, DeFi Development Corp’s move positions it to benefit from any increase in institutional demand for Solana. The offering remains subject to final pricing and market conditions, and the company has not disclosed when the transaction will close. This strategic move by DeFi Development Corp underscores its commitment to leveraging Solana's potential and positioning itself as a key player in the evolving landscape of digital assets and investment products.