The treasury management company on Solana – DeFi Development Corp – continues its impressive stock price increase after announcing the purchase of 17,760 SOL tokens valued at $2.72 million, with a medium price of $153.10/SOL as part of a long-term Treasury management strategy.
After this new purchase, the total number of SOL held by the company increased to 640,585 SOL, with an estimated market value of nearly $98 million. The company also stated that they will hold SOL long-term and staking to generate profits.
Stock price increased 2,733% YTD
After the news of additional SOL purchase, DeFi Development Corp's stock (ticker: DFDV) increased by 17% in Thursday's trading session, reaching $23.80 per share, and continued to slightly increase 0.8% in after-hours trading, ending at $24, according to Google Finance.
In the past 2 days alone, the stock price increased by 30% from the low of $18.47 on Wednesday. YTD, DFDV has increased by over 2,733%, though still 33% below the peak of $35.53 reached on May 21.
However, in the first quarter, the company reported a net revenue decline of 30% compared to the same period last year, and net profit margin also decreased by 15.5%.
In the shareholder letter dated July 2, the company affirmed its current strategy is to maintain capital flexibility and protect investors from short-term liquidity risks, while emphasizing that the balance sheet is designed to withstand prolonged adjustments and protect net asset value (NAV) per share in the long term.
Plan to raise $112.5 million
Previously on Wednesday, the company announced a plan to raise $112.5 million through a private placement, expected to be completed next Monday. Of this, $75.6 million will be used to execute stock purchases in the form of prepaid forward, with the remainder used for general operating purposes – including purchasing additional SOL for the Treasury.
Issues with SEC
In April, DeFi Development Corp had announced a plan to raise $1 billion to invest in Solana. However, on June 12, the company had to withdraw its registration filing because the U.S. Securities and Exchange Commission (SEC) requested management reports that were not submitted on time.
Despite this, investors have reacted positively to recent moves, showing confidence in the strategy focused on Solana and the long-term growth potential of DeFi Development Corp.
