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