DeFi Development Shares Pop: The Company’s Solana Holdings Near $100M
Following the announcement that it has invested $2.7 million in Solana as part of its ongoing treasury strategy, DeFi Development Corp. saw a further 17% increase on Thursday. The day prior, the company’s June business update, which included plans to raise $112.5 million, had already caused the stock price to spike higher.
DeFi Development Corp. announced Thursday that it has purchased 17,760 Solana tokens at an average price of $153.10 per, for a total value of $2.72 million. The company’s Solana stack was valued at 640,585 SOL following the transaction, or roughly $98 million. The business stated that it will stake the recently acquired tokens in order to produce yield and that it plans to hold them for a long time.
Investors Cheer DeFi Development’s Solana Move as Stock Climbs
The recent developments were welcomed by investors, as DeFi Development Corp.’s shares (DFDV) increased by almost 17% to $23.80 during Thursday’s trading session. In just two days, the stock has risen 30% from its Wednesday low of $18.47. It has also increased by about 2,733% so far this year. However, it is down 33% from its top of $35.53 on May 21.
According to the company’s March quarter report, its net profit margin decreased by 15.5%, and its net revenue plummeted by 30% year over year. The company stated that it seeks to preserve capital flexibility and shield investors from short-term liquidation risks in a statement sent to shareholders on July 2.
DFDV Set to Raise $112M, Investing Proceeds in Stock Buyback and SOL Holdings
On Wednesday, DeFi Development Corp. declared that it will use private placements to raise $112.5 million. It is anticipated that the offering will close on Monday. $75.6 million of the net proceeds will be used by the business to finance a prepaid forward stock acquisition. The company will also purchase SOL for its treasury and use the leftover funds for other company uses.
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