Key Highlights
- Defi Vikas now owns 999,999 Solana after investing $ 198 million.
- Solana jumped 12% shortly after the purchase, topping $200.
- The company has $5 million left for future SOL buys.
DeFi Development Makes Big Bet on Solana And It’s Paying Off
DeFi Development is going all-in on Solana and so far, that bet looks like it’s working out.
The Nasdaq-listed company just added another large batch of SOL to its treasury, bringing its total holdings to 999,999 tokens.
That’s only one Solana away from reaching the one million milestone.
The company made a huge $198 million purchase between July 14 and July 20.
As luck or strategy would have it, Solana’s price jumped 12%, crossing the $200 line shortly after.
Why DeFi Development Is Going All In on Solana
So why is DeFi Development betting everything on Solana?
According to CEO Joseph Onorati, it’s a very calculated move. Speaking on the Thinking Crypto podcast, he explained that Solana’s native staking yield and price volatilitymake it the ideal asset for a treasury growth strategy.
This volatility, Onorati noted, isn’t a problem. In fact, it’s a tool. The company uses price swings to generate value through convertible debt financing, which ultimately benefits shareholders.
He also made it clear they have no intention of adding any other crypto assets to the treasury “for the foreseeable future.”
Listen to the full Thinking Crypto interview here
Breaking Down the Solana Purchase
Between July 14 and July 20, DeFi Development gathered 141,383 SOL:
- Spot market purchases
- Locked Solana bought at a discount
- 867 SOL earned from validator rewards and other on-chain activities
All newly acquired tokens were staked immediately. This indicates that they are contributing to the security of the Solana network and earning rewards rather than merely sitting around doing nothing.
According to Nansen, Solana’s price climbed to $202 soon after.
More Solana Buys Could Be Next
DeFi Development isn’t done yet. In July, the company raised $ 19.2 million by issuing 740,000 shares of common stock.
Approximately 24,752 additional SOL at current pricing might be bought with the $5 million that is left over.
Given the company’s clear commitment to Solana, another large buy seems very likely in the near future.
Stock Price Response Was Muted
Despite the impressive crypto activity, DeFi Development’s stock didn’t see the same excitement.
On Monday, the shares declined by 3.65% to $ 23.52 before the shares jumped slightly, in the hourly trading by $ 24.55.
The disconnect market between Crypto benefits and stock price may be caused by caution or awaited and waiting for traditional investors.
Either way, it shows that stock movements aren’t always in sync with on-chain success.
Solana Is Attracting Other Institutions Too
DeFi Development isn’t the only company putting faith in Solana. Other institutions are making moves as well.
For example:
- On July 10, Bit Mining announced plans to raise $300 million to build its own treasury in Solana.
- On June 16, Memstrati, a Hong Kong-listed firm, purchased 2,440 souls, making it the first public trading company in the area to support Solan.
- This news led to an increase of 28.5% in its share price.
It’s clear that Solana isn’t just gaining traction in the developer community it’s starting to become a serious treasury asset for public companies, too.