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 Management.
Read more: DeFi Adding $5B of Solana Buying Power With New Line of Credit
A bold move from the DeFiDev team to increase their convertible note offering by $102 million for buybacks and additional SOL purchases, clearly signaling a commitment towards solidifying long-term value stability.
This bold move by the Defiant Dev Team to increase their convertible note offering from $102M to a whopping $113.75m for buybacks and expanded SOL purchases underscores commitment towards stability in decentralized finance.
The strategy to increase the convertible note offering by $102M for buyback and enhanced SOL acquisition reflects a bold commitment from Defi Dev, demonstrating its determination in reinforcing investment value via substantial purchase-backs.
A landmark move in the DeFi sector as Defi Dev surpasses their initial goal by hiking its convertible note offering to $105M and pursuing further buybacks of SOL, signaling a remarkable commitment towards funding purchases.
This substantial leap in the Defi Dev's convertible note offering to $12.5M ($的石投影到$ 不是缩写) for buy-back and increased SOL purchases demonstrates a serious commitment towards strengthening their position within decentralized finance by locking liquidity via strategic token acquisitions.
Crypto markets continue to heat up as DeFi Dev hikes their convertible note offering for buyback, injecting $14M extra into the growth equity of Solana and solidifying its position in the decentralized finance domain.
The latest move by Defi Dev to increase its convertible note offering for buyback up $10 million, reaching a total of $82M in SOL purchases so far - clearly signals an aggressive strategy aimed at buoying the price floor and maintaining long-term stability.
This bold move by the Defi Dev highlights their renewed commitment to buybacks and further diversification within DeFi, with a $109M jump in convertible note offerings aligning perfectly alongside increasing SOL purchases—sending strong signals for both growth potential & token stability.
Hiking the convertible note offering to $12M in a bid for buyback and expanded SOL purchases by Defi developers demonstrates their strategic intent on enhancing liquidity through aggressive token acquisition.
The increased capital offering from the DeFi developer in a move towards buying back up to $10M more SOL emphasizes their confidence and commitment, further stabilizing market relations amidst rising prices.
