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Solana Price – Solana Buyout Plan Sparks 9% Stock Drop
Solana Price – In a bold move shaking up the crypto scene, DeFi Development has announced a $100 million private convertible note offering aimed at purchasing Solana (SOL) tokens. The company plans to replicate MicroStrategy’s Bitcoin accumulation strategy, but this ambitious announcement triggered a sharp reaction—its stock price dropped over 9%, raising concerns among investors.
Is DeFi Development’s Solana Acquisition Plan Feasible?
Following MicroStrategy’s footsteps, many companies have been amassing Bitcoin reserves over the years. However, DeFi Development is charting a new course by choosing Solana as its primary asset. If the convertible note offering is successful, the raise could expand to $125 million, with notes maturing in 2030.
Notably, part of the proceeds will be allocated to a share buyback program designed to manage portfolio risk—highlighting the seriousness of their strategic approach.
DeFi Development’s Rebranding and Solana’s Market Challenges
Originally a commercial real estate firm named Janover, the company rebranded to DeFi Development in April 2025 to fully focus on SOL investments. Despite this pivot, the SEC rejected their initial $1 billion securities offering for Solana purchases, prompting the firm to seek alternative funding routes.
Meanwhile, Solana’s price volatility presents a significant hurdle. After showing positive momentum in late May, SOL faced selling pressure throughout June and July, dropping 6% as of July 2nd.
Stock Price Drops and Market Skepticism
Following the announcement, DeFi Development’s shares plummeted more than 9% in after-hours trading, signaling investor skepticism about both the company’s strategy and Solana’s market outlook.
While MicroStrategy’s steady Bitcoin acquisitions have been a pillar of confidence for BTC holders, DeFi Development aims to play a similar role in supporting SOL’s market. However, current uncertainties around Solana’s price and limited institutional interest may impede this plan’s success.
Conclusion: A Risky but Potentially Pioneering Move
DeFi Development’s $100 million convertible note offering marks a potential new chapter in corporate crypto investment strategies, especially outside Bitcoin. However, market reactions and SOL’s ongoing price fluctuations indicate that this endeavor won’t be without challenges.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
