Solana treasury firm @defidevcorp acquires 181,303 SOL at $155 avg., now holding 1.18M SOL ($218M+).

Solana treasury firm @defidevcorp acquires 181,303 SOL at $155 avg., now holding 1.18M SOL ($218M+).

DeFi Development Corp (DFDV), a Nasdaq-listed firm focusing on a crypto treasury strategy, has recently acquired 181,303 SOL tokens, adding to its existing holdings. The purchase, completed between July 21 and July 28, was funded primarily through the company's equity line of credit. The average price paid per token was $155.33, resulting in a total investment of approximately $28.4 million. This acquisition brings DFDV's total Solana holdings to 1.18 million SOL, valued at around $218 million [1].

The company's Solana-per-share metric (SPS) has seen a significant increase, rising by 12% to 0.0575. This metric is a key measure for DFDV, indicating the company's commitment to growing its Solana holdings. The firm issued around 975,000 new shares during the week, raising $20 million and bringing its month-to-date total credit line proceeds to $39 million. Approximately $10 million remains earmarked for future Solana purchases [1].

DFDV's CEO, Joseph Onorati, has expressed that Solana's volatility and yield make it an ideal choice for their treasury strategy. The company plans to stake the newly acquired tokens across multiple validators, including its own, to generate rewards and compound holdings. This strategy aligns with the firm's convertible debt strategy, which aims to monetize Solana's price swings [2].

The acquisition comes amidst a broader trend of publicly-traded firms adding cryptocurrencies to their balance sheets. Bit Mining, a Bitcoin mining firm, is also raising up to $300 million to build its own Solana treasury, while Hong Kong firm MemeStrategy has invested in Solana, becoming the first publicly traded HK company to do so [2].

Despite the recent acquisition, DFDV's stock experienced a slight dip, falling 3.65% to $23.52 on Monday, July 22, before rebounding in after-hours trading to $24.55. This market reaction may be a result of the market's ongoing adjustment to the integration of cryptocurrencies into traditional finance [2].

References:
[1] https://finance.yahoo.com/news/defi-dev-boosts-solana-treasury-114225095.html
[2] https://cryptorank.io/news/feed/6c6e0-defi-development-corp-nearly-hits-1m-sol-and-theyre-not-done-yet