Source: Cointelegraph
Original: “DeFi Development Plans to Raise $1 Billion to Boost Solana (SOL) Ecosystem Investment and Expand Capital Reserves”
DeFi Development Corp plans to raise over $1 billion in funding to invest in Solana, which is the sixth-largest cryptocurrency by market capitalization.
The company, listed on Nasdaq, originally a real estate financing platform connecting commercial real estate lenders with buyers, announced this plan in a Form S-3 registration statement submitted to the U.S. Securities and Exchange Commission (SEC) on April 25.
The document states that the funds raised will be used for general corporate purposes, including the purchase of Solana tokens.
According to the document, the company may use the proceeds from this fundraising to purchase more Solana and noted: “Solana itself does not pay interest, but rewards can be earned through staking. Whether the net proceeds from this fundraising will yield investment returns will depend on whether the value of Solana increases after we use the proceeds to purchase it.”
The company also warned that fluctuations in Solana's price could lead to its value being “far below” the net funds raised when converted to cash.
On April 7, a team of former Kraken exchange executives purchased 728,632 shares of common stock in Janover, which had been a real estate financing company connecting commercial real estate lenders with buyers. Subsequently, former Kraken Chief Strategy Officer Joseph Onorati was appointed as Chairman and CEO.
This announcement follows the DeFi Development Corp leadership team's adoption of a Solana treasury reserve policy. The company stated that they are “applying a proven public market treasury model to an earlier lifecycle, structurally more reflexive asset with significantly lower market exposure compared to Bitcoin.”
DeFi Development Corp's new Solana treasury reserve model has been compared to Michael Saylor's strategy. As of April 20, Saylor has accumulated over 538,200 Bitcoin (BTC), making him the largest corporate holder of Bitcoin globally.
The company's board approved this Solana-centric reserve policy on April 4, authorizing long-term accumulation and initiating Solana validator nodes to stake its treasury assets.
The company's Chief Investment Officer Parker White (formerly the Engineering Director at Kraken) is already operating a Solana validator node with $75 million in delegated staking funds.
Regulatory Concerns Surrounding Solana Investment
Although incorporating Solana into reserves is an important step in promoting altcoin adoption, the document also points out that the company remains concerned about the potential impacts of opaque cryptocurrency regulations: “We may be affected by regulatory dynamics related to crypto assets and the crypto asset market, which could adversely affect our business, financial condition, and operating results.”
The company noted that the uncertainty of regulation in the digital asset space could “negatively impact the price of Solana,” thereby affecting “the market price of our common stock.”
The company specifically mentioned that the potential risk of Solana being reclassified as a security remains a significant concern, which could lead to the company being classified as an investment company under the Investment Company Act of 1940.
However, thanks to the Solana acquisition plan, the company's stock price has already benefited. Cointelegraph reported that after DeFi Development Corp added $11.5 million worth of Solana tokens to its treasury on April 22, the company's stock price rose by over 12%.
Chris Chung, founder of the decentralized trading platform Titan in the Solana ecosystem, stated in an interview with Cointelegraph: “The decision by the commercial real estate platform Janover to incorporate Solana into its treasury is indeed groundbreaking. I believe that as cryptocurrencies become more prevalent in traditional finance, we will soon see more companies follow suit.”
Related: U.S. Senator Calls for Impeachment of Trump Over "Meme Coin Dinner" Incident
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
