Solana treasury firm DeFi Development reaches 2.59M SOL

Solana treasury firm DeFi Development reaches 2.59 million SOL

Solana treasury firm DeFi Development said on Monday, Oct. 12, that it added about 22,070 SOL in a week, reaching roughly 2.59 million SOL.

Solana treasury firm DeFi Development said on Monday, Oct. 12, that it added about 22,070 SOL in a week, reaching roughly 2.59 million SOL.

The quick take

Price: $SOL traded at $107.88, down 2.5% in 24 hours (-2.5% ↓), as of 5:41 p.m. ET on Binance’s SOL/USDT pair.
Trigger: DeFi Development added about 22,070 SOL, counting SOL equivalents, in the week to Oct. 12.
Watch: Whether CHAD, the firm’s 13% preferred stock, keeps trading near its $10 par value, since it funds new buying.

What happened

Solana treasury firm DeFi Development (Nasdaq: DFDV) added roughly 22,070 Solana ($SOL), including SOL equivalents, in the last week. The company shared the update on Monday, Oct. 12, and both The Block and Decrypt reported it. Its treasury now holds about 2.59 million SOL; Decrypt gives the exact count as 2,586,282.

That stash is 12% larger than at the company’s Aug. 12 earnings update. A week earlier, its Oct. 5 SEC filing listed about 2,564,212 SOL after a 26,203 SOL addition since Sept. 28.

Who’s buying and selling

The weekly additions are shrinking. This week’s 22,070 SOL compares with 26,203 SOL the week before, per the company’s filing. Decrypt reports that weekly buys stood at 101,381 SOL in mid-September.

The firm keeps buying while the market slides. $SOL traded at $107.88 on Binance’s SOL/USDT pair at 5:41 p.m. ET, down 2.5% in 24 hours. DFDV shares fell 2.2% on Monday and about 21% over the week, according to The Block.

“Short-term volatility has not changed our conviction or our commitment to accumulating SOL,” CEO Joseph Onorati said in the company release.

What to watch next

Much of the new buying power comes from CHAD, a Nasdaq-listed perpetual preferred stock. It pays a 13% annual dividend rate on a $10 stated amount and set record highs during the week to Oct. 9, both outlets said. The company sells new CHAD shares through a $300 million at-the-market program, per its Oct. 5 filing.

Each new CHAD share raises more money for SOL as its price nears $10, Decrypt explains. The firm has also approved buybacks of CHAD shares that trade below par. Decrypt adds a caution from the release: staking income might fall short of the dividend bill.

Bottom line: DeFi Development keeps adding $SOL every week, but at a slower pace, and its preferred stock now carries more of the funding.