DeFi Development Corp. extended its rally on Thursday, jumping another 17% after revealing a $2.7 million purchase of Solana (SOL) as part of its ongoing treasury strategy.
The latest surge followed a prior-day rally triggered by the company’s June business update, which included plans to raise $112.5 million.
In its Thursday announcement, the firm disclosed it had acquired 17,760 SOL at an average price of $153.10 per token, bringing its total Solana holdings to 640,585 SOL—valued at approximately $98 million. DeFi Development Corp. stated it plans to hold the newly acquired tokens long-term and stake them to generate yield.
Back in April, the company had unveiled an ambitious plan to raise $1 billion to invest in Solana. However, on June 12, it withdrew its filing after the U.S. Securities and Exchange Commission flagged a missed deadline for submitting a required management report.
Stock price rallies
Investors reacted positively to the recent updates, sending DeFi Development Corp. (DFDV) shares up nearly 17% to $23.80 during Thursday’s trading session.
The momentum continued after hours, with the stock ticking up another 0.8% to close at $24, according to Google Finance.
Since hitting a low of $18.47 on Wednesday, DeFi Development Corp. (DFDV) stock has climbed 30% in just two days. Despite a staggering year-to-date gain of over 2,733%, the stock remains down 33% from its May 21 peak of $35.53.
In its March quarter results, the company reported a 30% year-over-year decline in net revenue and a 15.5% drop in net profit margin.
In a July 2 letter to shareholders, DeFi Development Corp. emphasized its focus on maintaining capital flexibility and shielding investors from short-term liquidation risks. The company also noted that its balance sheet is designed to endure extended market downturns and preserve long-term net asset value per share.
DeFi Development Corp’s Capital Raise
On Wednesday, DeFi Development Corp. announced plans to raise $112.5 million through private placements, with the offering expected to close on Monday.
Of the net proceeds, $75.6 million will be allocated to fund a prepaid forward stock purchase agreement. The remaining funds will be used for general corporate purposes, including further Solana (SOL) acquisitions to bolster the company’s treasury.
