DeFi Development Seeks $20 Million to Expand Solana Holdings

DeFi Development Corp., a Solana-focused treasury company, is seeking to raise up to $20 million to expand its SOL holdings and fund other crypto-related investments.

The Nasdaq-listed company plans to issue floating-rate Series C perpetual preferred stock in a public offering, according to The Block on Sept. 1. The preferred shares will have a $10 par value and an initial annual dividend rate of 13%, which will reset as a floating rate. The first regular dividend is scheduled for Oct. 1.

DeFi Development said proceeds from the offering will be used for general corporate purposes, including additional SOL purchases and other digital-asset investments.

Once the issuance is completed, the company also plans to set aside a separate reserve equal to 12 months of dividends based on the initial 13% annual rate. The reserve will consist of cash, financial products or digital assets.

DeFi Development recently resumed buying SOL, saying it acquired about 19,000 tokens last week at an average price of $98.14. That increased its SOL holdings and equivalent assets to about 2.33 million.

Chief Executive Officer Joseph Onorati said DFDV was designed to provide investors with leveraged exposure to Solana. Recent trading activity shows investors are gradually recognizing the value of that strategy, he added.

DeFi Development shares closed 8.03% higher at $5.38 on Aug. 31. The stock has rallied 110% over the past month but is little changed so far this year.

SOL also extended its gains. The token traded at $103.3, up 1.9% over the past 24 hours, according to The Block. It has climbed 41% over the past month, though it remains down 17% this year.