DeFi Dev Corp Plans $100M Raise to Accumulate More SOL as Solana ETF Approvals Arrive Sooner Than Expected
The move comes as the first Solana staking ETF goes live and Grayscale’s $SOL-exposed fund gains ETF status, accelerating the urgency around $SOL accumulation.
- Published: Jul 2, 2025 at 09:57
- Edited: Jul 2, 2025 at 10:31
With institutional doors opening for Solana, DeFi Development Corp. (Nasdaq: DFDV) has announced a proposed $100 million private offering of convertible senior notes due 2030. The notes, offered to qualified institutional buyers under Rule 144A, come with an option for an additional $25 million. Proceeds will partly fund a prepaid forward stock repurchase and further acquisition of $SOL as part of DFDV’s ongoing treasury strategy, which is built around Solana.
The company, the first US-listed firm with a SOL-focused treasury, has already accumulated over 609,000 $SOL (~$90 million).
It operates its own validator and has integrated into the Solana ecosystem through partnerships with projects including dogwifhat, Fragmetric, Bonk, and Kamino. The company has also launched a Solana-native liquid staking token (LST), $DFDV, which is integrated across Solana DeFi.
Prepaid Forward Structure Aims to Ease Sell Pressure Through Convertible Arbitrage
The prepaid forward structure attached to the offering enables hedge funds to short the stock without selling shares directly into the market. This approach allows them to maintain a more delta-neutral position and is commonly used as part of a classic convertible arbitrage strategy. By enabling such positioning, DeFi Development Corp. aims to manage potential volatility and offset selling pressure on its common stock. The move follows a 16% drop in DFDV shares on June 24 and reflects the company’s attempt to structure the deal in a way that aligns investor incentives without causing disorderly price action.
Why the ETF Clock May Be Ticking Faster Than Expected
DFDV’s timing aligns with a pivotal shift in the US regulatory landscape. The Rex Shares-Osprey SOL + Staking ETF ($SSK) will officially begin trading today, becoming the first ETF in the U.S to offer staking exposure. The structure utilizes a 40% allocation to other Solana ETPs to comply with the 1940 Act, thereby sidestepping the traditional approval route typically used for spot ETFs.
Just a day prior, the SEC approved Grayscale’s Digital Large Cap Fund (GDLC) to convert into an ETF, granting $SOL indirect exposure alongside BTC, ETH, XRP, and ADA.
While $SOL comprises just 2.9% of the GDLC portfolio, the back-to-back approvals suggest the SEC may be warming faster than expected to Solana-based products.
Currently, nine Solana spot ETF applications remain pending, with final deadlines approaching in October. For companies like DFDV, which position themselves as publicly traded companies with $SOL treasuries, accelerating accumulation may be seen as a hedge to capture value ahead of expected inflows once heavyweight issuers like Fidelity, VanEck, and Franklin Templeton receive approval for their Solana spot ETFs.
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