Defi Development Corp has announced plans to raise $100 million through personal provision of convertible senior notes to strengthen its Solana-centric financial strategy.
Defi Development Corp. says the proceeds will be partially used to buy back their own shares through a prepaid forward agreement with memo buyers, and the remaining funds will be directed towards general corporate purposes, such as by acquiring more Solana (SOL) as part of its asset accumulation strategy.
The first US publicly listed company, pursued a Solana-based financial model, but on July 2, the memo matured in July 2030, announced that it would pay interest twice a year.
The unsecured notes will be provided to qualified institutional buyers under Rule 144A of the Securities Act, and the buyer will be given the option to purchase an additional $25 million within 13 days of its initial issuance.
Prior to January 2030, conversion of a company to shares or cash is permitted only under certain conditions. The holder can then convert the notes at any time before maturity and the payment method will be determined during pricing.
Funding was forced to withdraw its planned $1 billion registration application after the company’s set-off in June, after the Securities and Exchange Commission (SEC) was deemed unsuitable for a streamlined S-3 form due to the loss of internal control reports on its annual application.
The filing, filed in April, was intended to raise capital to build a large Treasury ministry, similar to the strategies used by Bitcoin-holding companies to promote long-term value through staking and price assessments.
The company’s latest capital raise came shortly after stocks fell 16% on June 24, indicating efforts to strengthen its balance sheet and reassure investors as interest in Solana-based investment products grows.
The recent launch of ETFs has added momentum to the market. On June 1st, Rex Shares and Osprey debuted Sol + Staking ETF ($SSK). This is the first US fund to provide staking exposure by assigning 40% assets to Solana products overseas to comply with regulatory requirements.
A day ago, the SEC approved Grayscale’s Digital Large Cap Fund to convert to ETFs, adding indirect exposures to Solana along with Bitcoin, Ethereum, XRP and Cardano.
As the SEC considers multiple Crypto ETF proposals, the Defi Development Corp movement is positioned to benefit from the increased institutional demand for Solana. This offering is subject to final pricing and market conditions and does not disclose the company when the transaction closes.
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