DeFi Development Corp (DFDV), a Nasdaq-listed firm, has announced the issuance of $112.5 million in convertible notes to expand its Solana-focused cryptocurrency treasury strategy. This capital raising effort comes as part of the company’s ongoing initiative to increase its holdings in Solana’s native token, SOL, while also exploring additional strategic opportunities in the digital asset space.
DeFi Development Corp Move to Boost Solana Strategy
Initially set at $100 million, DeFi Development Corp has decided to upsize its offering to $112.5 million. The offering will consist of convertible notes, a type of debt that can be converted into shares of the company in the future. These notes will mature in 2030, with an annual interest rate of 5.5%, payable semi-annually.
Investors have the right to convert their notes into equity at a price of $23.11 per share, representing a 10% premium on the closing price of the stock on July 1, 2025. The company is also offering investors the option to purchase an additional $25 million in notes with the deal expected to close by July 7, 2025.
This move come amid launch of the first U.S.-listed Solana Exchange-Traded Fund (ETF) REX-Osprey Solana Staking ETF which has boosted the optimism in SOL.
Focus on Solana Token Acquisitions
DeFi Development Corp has centered its strategy on acquiring and holding Solana tokens (SOL). As of May 2025, the firm had accumulated over 600,000 SOL. A portion of the $112.5 million raised from the convertible note offering, around $75 million, to purchase more SOL tokens.
In addition to expanding its holdings, the firm is utilizing innovative financial structures, including a prepaid forward stock purchase transaction, to manage risk for investors involved in the offering.
The prepaid forward mechanism will enable investors to hedge their positions in the notes offering, allowing them to purchase or sell shares of the company at specific future points in time. This strategy is intended to provide additional security to investors while enabling DeFi Development Corp to continue building its Solana treasury.
Growth of Solana-Focused Firms and ETFs
DeFi Development Corp is not the only firm that has bet on Solana as a central part of their crypto treasury strategies. Other firms such as Sol Strategies, a Toronto listing company, have also ventured in an effort to generate capital to invest in the purchase of Solana. For instance, in order to purchase Solana tokens and scale its validator business, Sol Strategies filed a $1 billion shelf prospectus.
In addition, companies like Upexi, a consumer products company announced they will raise a $100 million token purchase of Solana.
Meanwhile, the recent fundraiser by the DeFi Development Corp is also coming after its successful move to raise a $5 billion line of credit in June of 2025. Nevertheless, in the case of DeFi Development Corp, although its share price has fallen by more than 60% of its May high point due to market fluctuations, its strategic reorientation towards Solana has contributed to a massive increase in its stock by about 3,500%. Moreover, according to the most recent report, the company had about 621,313 SOL tokens, which cost around $107 million.
Kelvin Munene Murithi
Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary .
With a Bachelor’s degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets.
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