DeFi Development Solana treasury reaches 2.56 million SOL

DeFi Development Corp. said on Oct. 5 that it now holds about 2.56 million $SOL after adding 26,203 tokens since Sept. 28.

The quick take

Price: $SOL trades at $119.47, down 1.8% in 24 hours, as of 11:39 a.m. ET (CoinGecko).
Trigger: DeFi Development added about 26,203 SOL since Sept. 28, its SEC filing shows.
Watch: Final third-quarter results, which may differ from the company’s preliminary estimates.

What happened

The DeFi Development Solana treasury now holds about 2,564,212 Solana ($SOL) and SOL equivalents, the Nasdaq-listed company said on Oct. 5. It added about 26,203 SOL since Sept. 28, according to a press release it filed with the SEC at 8:19 a.m. ET.

The company valued the holdings at $302 million. At the CoinGecko price of $119.47 at 11:39 a.m. ET, the same amount is worth about $306 million. Holdings are up about 11% since its Aug. 12 earnings update, the company said.

Why it moved

DeFi Development names two engines of growth: direct purchases and organic accumulation. It stakes its $SOL and runs its own validator, which earns staking rewards and fees from delegated stake.

Based on preliminary figures as of Sept. 30, it expects double-digit growth in SOL per share since Aug. 12. It also expects net asset value (NAV) per share and cash to more than double, and SOL-denominated borrowings to fall. The filing says these estimates may change.

Who’s buying and selling

Its newest funding tool is CHAD, a Nasdaq-listed preferred stock paying a 13% yearly dividend rate on a $10 stated amount, or $1.30 a share each year. DeFi Development paid the first CHAD dividend on Oct. 1 and has a $300 million at-the-market program to sell more.

Chief executive Joseph Onorati said the goal is “making each common share represent more SOL over time.”

Common shareholders have had a hard year. The Block reported at 10:33 a.m. ET that the stock rose about 2% in early Monday trading but is down nearly 70% over the past year.

What to watch next

Final third-quarter figures, which will confirm or revise the per-share estimates.
Whether CHAD trades closer to its $10 stated amount, which the company says would help it raise more capital.
The next treasury update: the latest one added about 1% to holdings in a week.

Bottom line: DeFi Development keeps adding $SOL and now leans on a high-dividend preferred stock to fund more buying, but its third-quarter per-share gains are still estimates.

Price data: CoinGecko.