Latest news with #DFDV
Yahoo
a day ago
- Business
- Yahoo
This Company Is Giga-Bullish About Solana. But Should You Buy the Stock or the Coin?
Buying crypto treasury company shares means getting leveraged exposure to the coin. You'll pay for that privilege. One treasurer in particular might be offering a bit more than the bare minimum here. 10 stocks we like better than Solana › When gold prospectors ran out of shovels, savvy merchants filled the gap and sold them tools at a markup. Fast-forward to today, and a company called DeFi Development (NASDAQ: DFDV) wants to sell investors a different kind of pick, specifically equity in a corporate balance sheet stuffed with Solana (CRYPTO: SOL). For those who remember Strategy turning its convertible debt into a Bitcoin stash, DeFi Development's pitch will feel familiar. The plan is to raise cash via issuing debt and equity, buy Solana with the proceeds, and then repeat the process. But this business is actually pursuing a broader mandate than the typical one-coin treasury project, which could create new revenue streams or perhaps just add risk. That raises the question of whether it would make sense to buy the treasurer, or whether it's wiser to just buy the underlying coin. Here's what's really going on and how to decide which side of this trade belongs in your portfolio. First, the numbers. After a fresh purchase of 47,272 Solana on July 7, DeFi Development holds 690,420 Solana worth roughly $109 million. Management stakes most of those coins across its own validator set, harvesting native yield that theoretically compounds the company's book value over time. Second, let's look at the war chest. On July 2, the company boosted a convertible note sale to $112.5 million, earmarking $75 million for an opportunistic share buyback and the rest for buying more Solana. This cheap debt juices returns for holders of the company's shares if Solana rallies. If it slides, shareholders eat the decline plus the note's 5.5% coupon. An interesting and perhaps decisive component of DeFi's strategy is the ecosystem play. In mid-May, it linked with BONK, a major meme coin and meme coin-launchpad project, to co-run a Solana validator, marking the first public company and meme coin-node partnership. BONK will supposedly supply grassroots enthusiasm from investors for Solana itself, whereas the treasurer supplies capital and public market credibility. The duo splits rewards and publicity alike, theoretically expanding staking income and thus demand for Solana. It's this ecosystem collaboration that might make the business more than just another crypto treasurer without any economic moat. Teaming up with meme projects isn't any guarantee that the stock will do well whatsoever, but it could possibly be the start of a competitive advantage, especially if the business can attract new investors while simultaneously driving the capital appreciation of its main asset in the way that it aspires to. As of July 10, DeFi Development stock trades near $25. Given it holds about $5.90 of Solana per share, buyers are paying a large premium for this stock. In comparison, one SOL costs about $158 in the spot market, and investors get exposure to close to 100% of the value of their investment even after accounting for fees. The exposure gap here reflects hope that management will compound value dramatically faster than the coin itself. There is not yet any evidence that this management team in particular is capable of that even though a similar treasury approach has helped Strategy to perform much better than Bitcoin during the past few years. The premium also bakes in leverage risk; the convertible notes convert at $23.11, so a big Solana price decline could dilute equity just when morale is lowest. Furthermore, leverage isn't free. Interest eats into staking yield, and callable debt can pressure liquidity during bear markets. Shareholders also face dilution from at-the-market equity lines that management has already registered, which is how this business funded earlier Solana buys. None of those headaches apply to holding Solana directly, which would also give investors the option to capture the staking yield themselves. That doesn't mean the stock is doomed. If Solana rockets another 200% and staking rewards stay fat, DeFi Development's per-share crypto backing could outpace share issuance, shrinking the premium and driving an increase in its share price. A successful validator business or tokenized share listing on the Kraken crypto exchange, which is planned for later this year, might unlock new revenue too. But those catalysts are speculative, not confirmed. Therefore, logic favors buying Solana today and watching DeFi Development from a safe distance, if not ignoring it for now. You capture the same core thesis, which is to say Solana's speed, growing developer base, and rich ecosystem, without taking on convertible debt, possible dilution, or management execution risk. If the treasury company proves it can add value beyond simple accumulation as a result of its partnership with BONK, the calculus can change. Until then, the coin looks like the cleaner bet. Before you buy stock in Solana, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Solana wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $694,758!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $998,376!* Now, it's worth noting Stock Advisor's total average return is 1,058% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Alex Carchidi has positions in Bitcoin and Solana. The Motley Fool has positions in and recommends Bitcoin and Solana. The Motley Fool has a disclosure policy. This Company Is Giga-Bullish About Solana. But Should You Buy the Stock or the Coin? was originally published by The Motley Fool
Globe and Mail
a day ago
- Business
- Globe and Mail
This Company Is Giga-Bullish About Solana. But Should You Buy the Stock or the Coin?
Key Points Buying crypto treasury company shares means getting leveraged exposure to the coin. You'll pay for that privilege. One treasurer in particular might be offering a bit more than the bare minimum here. 10 stocks we like better than Solana › When gold prospectors ran out of shovels, savvy merchants filled the gap and sold them tools at a markup. Fast-forward to today, and a company called DeFi Development (NASDAQ: DFDV) wants to sell investors a different kind of pick, specifically equity in a corporate balance sheet stuffed with Solana (CRYPTO: SOL). For those who remember Strategy turning its convertible debt into a Bitcoin stash, DeFi Development's pitch will feel familiar. The plan is to raise cash via issuing debt and equity, buy Solana with the proceeds, and then repeat the process. But this business is actually pursuing a broader mandate than the typical one-coin treasury project, which could create new revenue streams or perhaps just add risk. That raises the question of whether it would make sense to buy the treasurer, or whether it's wiser to just buy the underlying coin. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Here's what's really going on and how to decide which side of this trade belongs in your portfolio. This treasurer competes with a twist First, the numbers. After a fresh purchase of 47,272 Solana on July 7, DeFi Development holds 690,420 Solana worth roughly $109 million. Management stakes most of those coins across its own validator set, harvesting native yield that theoretically compounds the company's book value over time. Second, let's look at the war chest. On July 2, the company boosted a convertible note sale to $112.5 million, earmarking $75 million for an opportunistic share buyback and the rest for buying more Solana. This cheap debt juices returns for holders of the company's shares if Solana rallies. If it slides, shareholders eat the decline plus the note's 5.5% coupon. An interesting and perhaps decisive component of DeFi's strategy is the ecosystem play. In mid-May, it linked with BONK, a major meme coin and meme coin-launchpad project, to co-run a Solana validator, marking the first public company and meme coin-node partnership. BONK will supposedly supply grassroots enthusiasm from investors for Solana itself, whereas the treasurer supplies capital and public market credibility. The duo splits rewards and publicity alike, theoretically expanding staking income and thus demand for Solana. It's this ecosystem collaboration that might make the business more than just another crypto treasurer without any economic moat. Teaming up with meme projects isn't any guarantee that the stock will do well whatsoever, but it could possibly be the start of a competitive advantage, especially if the business can attract new investors while simultaneously driving the capital appreciation of its main asset in the way that it aspires to. Which is the smarter bet right now? As of July 10, DeFi Development stock trades near $25. Given it holds about $5.90 of Solana per share, buyers are paying a large premium for this stock. In comparison, one SOL costs about $158 in the spot market, and investors get exposure to close to 100% of the value of their investment even after accounting for fees. The exposure gap here reflects hope that management will compound value dramatically faster than the coin itself. There is not yet any evidence that this management team in particular is capable of that even though a similar treasury approach has helped Strategy to perform much better than Bitcoin during the past few years. The premium also bakes in leverage risk; the convertible notes convert at $23.11, so a big Solana price decline could dilute equity just when morale is lowest. Furthermore, leverage isn't free. Interest eats into staking yield, and callable debt can pressure liquidity during bear markets. Shareholders also face dilution from at-the-market equity lines that management has already registered, which is how this business funded earlier Solana buys. None of those headaches apply to holding Solana directly, which would also give investors the option to capture the staking yield themselves. That doesn't mean the stock is doomed. If Solana rockets another 200% and staking rewards stay fat, DeFi Development's per-share crypto backing could outpace share issuance, shrinking the premium and driving an increase in its share price. A successful validator business or tokenized share listing on the Kraken crypto exchange, which is planned for later this year, might unlock new revenue too. But those catalysts are speculative, not confirmed. Therefore, logic favors buying Solana today and watching DeFi Development from a safe distance, if not ignoring it for now. You capture the same core thesis, which is to say Solana's speed, growing developer base, and rich ecosystem, without taking on convertible debt, possible dilution, or management execution risk. If the treasury company proves it can add value beyond simple accumulation as a result of its partnership with BONK, the calculus can change. Until then, the coin looks like the cleaner bet. Should you invest $1,000 in Solana right now? Before you buy stock in Solana, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Solana wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $694,758!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $998,376!* Now, it's worth noting Stock Advisor 's total average return is1,058% — a market-crushing outperformance compared to180%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 7, 2025
Globe and Mail
4 days ago
- Business
- Globe and Mail
DeFi Dev Corp. Brings Total Holdings to 690,420 SOL After 47,272 SOL Purchase
BOCA RATON, FL, July 08, 2025 (GLOBE NEWSWIRE) -- DeFi Development Corp. (Nasdaq: DFDV) (the 'Company') the first public company with a treasury strategy built to accumulate and compound Solana ('SOL'), announced today the purchase of 47,272 Solana ('SOL') at an average purchase price of $149.09 and valued at approximately $7.03 million. Following the transaction, DeFi Development Corp. now holds a total of approximately 690,420 SOL and SOL equivalents, valued at approximately $102.7 million, inclusive of staking rewards. The latest purchase marks a +64.1% increase in the Company's SOL and SOL equivalent holdings compared to 420,690 SOL held 60 days prior. Below is a summary of DeFi Dev Corp's current SOL position and key per-share metrics as of July 8, 2025: Total SOL & SOL Equivalents Held: 690,420 Total SOL & SOL Equivalents Held (USD): approximately $102.7 million Total Shares Outstanding: 17,402,299 SOL per Share ('SPS'): 0.0397 SPS (USD): $5.90 The total shares outstanding is as of June 30, 2025. The most recently purchased SOL will be held long-term and staked to a variety of validators, including DeFi Dev Corp.'s own Solana validators to generate native yield. The Company will continue to provide suitable updates to our Treasury and underlying strategies, through public releases and regulatory filing(s), as available. About DeFi Development Corp. DeFi Development Corp. (Nasdaq: DFDV) has adopted a treasury policy under which the principal holding in its treasury reserve is allocated to SOL. Through this strategy, the Company provides investors with direct economic exposure to SOL, while also actively participating in the growth of the Solana ecosystem. In addition to holding and staking SOL, DeFi Development Corp. operates its own validator infrastructure, generating staking rewards and fees from delegated stake. The Company is also engaged across decentralized finance ('DeFi') opportunities and continues to explore innovative ways to support and benefit from Solana's expanding application layer. The Company is an AI-powered online platform that connects the commercial real estate industry by providing data and software subscriptions, as well as value-add services, to multifamily and commercial property professionals, as the Company connects the increasingly complex ecosystem that stakeholders have to manage. The Company currently serves more than one million web users annually, including multifamily and commercial property owners and developers applying for billions of dollars of debt financing per year, professional service providers, and thousands of multifamily and commercial property lenders, including more than 10% of the banks in America, credit unions, real estate investment trusts ('REITs'), debt funds, Fannie Mae® and Freddie Mac® multifamily lenders, FHA multifamily lenders, commercial mortgage-backed securities ('CMBS') lenders, Small Business Administration ('SBA') lenders, and more. The Company's data and software offerings are generally offered on a subscription basis as software as a service ('SaaS'). Forward-Looking Statements This release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "believe," "project," "estimate," "expect," strategy," "future," "likely," "may,", "should," "will" and similar references to future periods. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) fluctuations in the market price of SOL and any associated impairment charges that the Company may incur as a result of a decrease in the market price of SOL below the value at which the Company's SOL are carried on its balance sheet; (ii) the effect of and uncertainties related the ongoing volatility in interest rates; (iii) our ability to achieve and maintain profitability in the future; (iv) the impact on our business of the regulatory environment and complexities with compliance related to such environment including changes in securities laws or other laws or regulations; (v) changes in the accounting treatment relating to the Company's SOL holdings; (vi) our ability to respond to general economic conditions; (vii) our ability to manage our growth effectively and our expectations regarding the development and expansion of our business; (viii) our ability to access sources of capital, including debt financing and other sources of capital to finance operations and growth and (ix) other risks and uncertainties more fully in the section captioned "Risk Factors" in the Company's most recent Annual Report on Form 10-K and other reports we file with the SEC. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.
Yahoo
02-07-2025
- Business
- Yahoo
Defi Dev Hikes Convertible Note Offering to $112M for Buyback, More SOL Purchase
Defi Development Corp (DFDV), a Nasdaq-listed firm with a crypto treasury strategy focused on Solana SOL, said on Wednesday it is issuing $112.5 million in convertible notes to raise capital for a stock buyback program and more SOL purchases. The notes offering, which was upsized from $100 million, will mature in 2030 with a 5.5% annual rate and offer investors the right to convert debt into equity at $23.11 per share, roughly a 10% premium on Monday's closing price. Investors also have an option to buy $25 million more of the notes in this round, expected to close on July 7. DFDV shares traded 12% down in the early Wednesday session. That's more than 60% lower than the May peak, but the firm's crypto pivot has pushed it around 3,500%. The firm aims to use $75 million of the proceeds for a prepaid forward stock purchase transaction that's being negotiated with one of the initial investors in convertible notes, according to the press release. This facility would allow the investor to hedge the convertible note position through derivative trades and short sales, the firm said. The remainder of the capital would go to general corporate use, including the acquisition of more SOL tokens. Defi Dev, formerly known as real estate tech platform Janover, is part of a growing roster of publicly-traded firms raising funds by selling shares and debt to add cryptocurrencies on their balance sheet, following Strategy's playbook with bitcoin BTC. The company focuses on the Solana blockchain, operating validators and accumulating the network's native token. The latest fundraising round follows last month's $5 billion equity line of credit with RK Capital in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-06-2025
- Business
- Yahoo
Tokenized Shares of Solana Treasury Company Defi Dev Coming to Kraken
DeFi Development Corp. (DFDV), the Nasdaq-listed firm with a crypto treasury strategy focused on Solana SOL, is bringing its equity onto blockchain rails through crypto exchange Kraken's upcoming tokenized stock trading venue. The company's shares will be tokenized under the ticker DFDVx on the Solana network, joining a select group of tokenized versions of major stocks like Apple and Tesla on Kraken's upcoming xStocks platform, a Monday press release said. In practice, a developer might integrate DFDVx into a decentralized finance (DeFi) application, allowing users to hold, trade, or even borrow against shares of a Nasdaq-listed company directly on a blockchain. CEO Joseph Onorati called the tokenized equity 'a DeFi lego block,' suggesting that it could serve as a building block for more complex financial instruments. The listing comes as interest in tokenization of real-world asset (RWA) such as equities, funds and real estate is rising. Tokenization allows traditional financial products to trade around-the-clock, settle faster and develop use cases in decentralized finance (DeFi) applications. It's potentially a massive opportunity: the market size of all tokenized RWAs could reach $18.9 trillion by 2033 with on-chain equities being one of the main group of assets, according to a report by BCG and Ripple. Rival exchange Coinbase reportedly also seeks regulatory approval to offer tokenized stock trading. "We view the tokenization of our stock as a DeFi lego block, one that developers and institutions can build on top of," said Joseph Onorati, CEO of DeFi Dev. "As part of the xStocks alliance, we have seen incredible demand for access to US equities; the crypto community is excited for on-chain access to crypto treasury strategy companies like DFDV," said Val Gui, general manager of xStocks for Kraken.
