Defi Development has announced a $100 million private convertible note offer aimed at implementing its MicroStrategy acquisition plan with Solana.
However, this ambitious plan could face a setback as the stock price fell above 9% after it announced sales. Solana’s own performance is wobbling, and this effort may reflect the appetite of the crypto market.
Can Defi Development buy enough Solana?
Since MicroStrategy launched its trend, companies around the world have been building up Bitcoin stockpiles. This phenomenon can have a major impact on BTC, but most remain isolated by this asset.
However, Defi development has built a new path and is committed to Solana as an asset of choice.
According to the plan, Defi Development aims to raise $100 million to buy more Solana. If recruitment goes well, there could be a new $125 million planned for a convertible senior note in 2030.
Additionally, the private portion of revenue is sent to stock repurchase as part of a prepaid forward to manage risk in the portfolio. This illustrates a well-considered strategy.
Previously, the company was a commercial real estate company named Janover. However, it was rebranded to Defi development in April this year, with the aim of being fully committed to SOL.
The SEC rejected its initial plan to raise $1 billion through securities sales for Solana purchases, but accessed alternative sources of funding to begin acquiring assets.
Currently, planning currently has major advantages and disadvantages. Unfortunately, Defi’s development must combat Solana’s recent price calamity.
Sol had some positive momentum in late May, but has seen set-offs throughout June and faced bearish market trends in July. Today, the price of assets has already fallen by 6%.
However, Defi development can have a significant impact on Solana. While most companies’ Bitcoin holders follow the micro strategy, this company could become a SoL market activist.
Saylor’s company is a pillar of confidence in BTC, and its constant purchases help lift prices. Defi Development’s own investment can perform the same functions.
Still, there is a lot of uncertainty involved. For one thing, if the company wants to buy SOL worth $100 million, it will need to sell a comparable amount of shares. Defi development may not find sufficient institutional interest, taking into account the Solana market.
Since declaring the memo offering, Defi Development’s shares have exceeded 9% in after-hours trading. The recession began within 30 minutes of the company’s social media announcement, which could be a bad sign.
Whether the company succeeds or fails, this stock offering provides useful data on the market appetite and the viability of a company’s crypto acquisition strategy.
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