In brief
- Publicly traded DeFi Development Corp. entered into an agreement for a $5 billion equity line of credit.
- The firm will use any proceeds from the issuance and sale of its common shares to buy SOL.
- Shares of DFDV are up nearly 20% on the day and more than 100% on the week.
Publicly traded DeFi Development Corp. entered into an agreement for a $5 billion equity line of credit with RK Capital the firm announced on Thursday.
Based on the agreement, the AI-powered real estate platform turned Solana treasury company will have the right—but not the obligation—to issue and sell up to $5 billion in shares of common stock to RK Capital, a DFDV partner and PIPE investor.
“An equity line of credit (ELOC) gives us flexibility. Rather than locking in one-time pricing in volatile markets, we can raise capital gradually and only when it aligns with our goal: increasing SOL per share,” DeFi Development Corp. CEO Joseph Onorati told Decrypt. “We’ve deliberately avoided high-leverage or short-term debt to insulate long-term shareholders from forced selling or liquidity crunches.”
The company will use any proceeds from the issuance and sale of shares to purchase Solana. Asked when that might happen, Onorati told Decrypt the firm is not offering specific guidance.
“What we can say is that our goal is not to raise for the sake of it—it’s to raise only when it compounds long-term [SOL per share],” he said, adding that the firm will only raise when it is in its best interest.
“We’ll only raise when it’s clearly advantageous to SOL per share. That typically means when we’re trading at a meaningful premium to our net asset value (mNAV) and there’s a clear, accretive opportunity to capture that spread,” Onorati added. “Our north star is growing SOL/share—if a raise doesn’t support that, we won’t do it.”
Since establishing its Solana treasury strategy in early April, the firm has already amassed nearly $100 million worth of SOL, holding more than 620,000 tokens at present time.
In addition to accumulating the sixth-largest crypto asset, DFDV has further entrenched itself within the Solana ecosystem.
Beginning with its name change from Janover to DeFi Development Corp, a signal of its commitment to the crypto endeavor, the firm also acquired a Solana validator business for $3.5 million to help effectively fuel its SOL stake. Additionally, it partnered with leading Solana meme coin community BONK and created its own liquid staking token since that time, providing those staking with its validator set to maintain liquidity while earning yield.
Shares of DFDV are up 21% today and 115% on the week. Meanwhile, Solana has dropped by 3.4% in the last 24 hours, but is up around 5% on the week to $157.66.
On Wednesday, the firm withdrew a registration statement on Form S-3 with the SEC, pulling back a filing related to a planned $1 billion fundraise to fuel SOL purchases. Decrypt inquired about how the move will impact its plans to acquire Solana, but did not immediately receive a response.
Edited by Andrew Hayward
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