DeFi Development Buys $16M in SOL, But Shares Drop 25%

Solana

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DeFi Development acquires 86,307 SOL for $16 million at an average price of $110.91, thus increasing its treasury to 2.2 million SOL, with a current value of $426 million. Even with this addition, the value of the company’s SOL per share decreased by 25% from $19.44 to $14.67. The drop reflects the dilution of warrants outpacing the growth in treasury as the total count of shares approaches 31.9 million.

The company intends to stake the newly acquired SOL through its validators and other infrastructure to earn yield. DeFi Development remains one of the largest public Solana holders, as the institutional holders of SOL surpass $3 billion and include 20 holders.

The overall trend of digital asset treasuries observing compressed valuations and slower accumulation negatively affects performance. DeFi Development continues to engage in buybacks as well as equity raises to fund its strategy to augment SOL holdings, with some balance of share repurchases.

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Harshit Dabra is a blockchain researcher and crypto analyst with over four years of experience in the cryptocurrency space. From smart contract development to market analysis and protocol research, he has worked across multiple layers of the Web3 stack.