DeFi Development Corp has successfully completed an expanded private placement of convertible senior notes, raising $112.5 million to strengthen its balance sheet and continue building its Solana cryptocurrency position. The Nasdaq-traded company (DFDV) marketed these 5.5% convertible bonds exclusively to institutional investors through a Rule 144A private offering, with the final amount exceeding their original fundraising target due to strong investor demand.
The financing structure includes net proceeds of approximately $108.1 million, with potential to reach $132.2 million if investors fully utilize an additional $25 million purchase option. The company has allocated roughly $75.6 million of these funds toward a prepaid forward stock purchase arrangement linked to the bond issuance, while designating remaining capital for general corporate operations and continued Solana token acquisitions. This strategic allocation demonstrates the company’s commitment to expanding its digital asset treasury while maintaining operational flexibility.
The convertible instruments feature an initial conversion price set at $23.11 per share, representing a 10% premium above the company’s July 1st closing stock price of $21.01. These securities will mature on July 1, 2030, with early redemption provisions becoming available starting July 5, 2026. The company has structured a $75.6 million prepaid forward agreement with initial purchasers to enable hedging strategies for bondholders, though management has warned that such hedging activities could influence both the stock price and the effective conversion terms of the notes.
DeFi Development Corp operates under a focused treasury management approach, concentrating on accumulating and maximizing returns from Solana tokens as a core business strategy. The company’s current SOL portfolio carries a market valuation of $263 million, positioning it as a significant institutional holder in the Solana ecosystem. The bond offering is scheduled to complete on July 8th, subject to standard closing conditions, marking another milestone in the company’s aggressive digital asset accumulation strategy.
