DeFi Development Corp. (DFDV) surged 34% this week after revealing a fresh $2.7 million investment in Solana. On Thursday alone, the stock jumped 17% to $23.80, before gaining another 0.8% in after-hours trading to touch $24, according to Google Finance.
The company announced it had bought 17,760 Solana (SOL) tokens at an average price of $153.10, bringing its total SOL holdings to 640,585, now worth around $98 million. DeFi Dev said it plans to hold these tokens long-term and stake them to earn yield.
Source: Google Finance
The new purchase is one of the components of the overall treasury strategy of the company. In April, DeFi Development Corp announced a $1 billion plan to invest in Solana. Though an earlier SEC filing was withdrawn in June after the firm missed a report deadline, the firm seems to be in full steam.
On Wednesday, the company announced plans to raise $112.5 million through private placements, with the deal expected to close Monday. It plans to use $75.6 million for a prepaid forward stock purchase and the rest for corporate purposes, including buying more SOL.
Investors seem optimistic despite weak Q1 numbers, where net revenue dropped 30% year-over-year. In a July 2 shareholder letter, the company said it’s focused on protecting investor capital and riding out market volatility.
From a low of $18.47 on Wednesday to $24 on Thursday night, DFDV stock is now up over 2,733% year-to-date, though still 33% below its May peak of $35.53.
