DeFi Development Corp. announced a significant purchase of Solana tokens, which led to a rise in its stock on the market.
Acquisition of Solana and Its Impact
On Thursday, DeFi Development Corp. reported the purchase of 17,760 Solana (SOL) tokens for $2.72 million at an average price of $153.10 per token. Following this acquisition, the company's total Solana holdings amounted to 640,585 tokens, worth approximately $98 million. The company plans to hold these tokens long-term and intends to stake them to generate yield.
Investor Reaction to the News
The market reacted positively to the news of the purchase, with DeFi Development Corp. stock (DFDV) increasing by 17% to $23.80 during Thursday's trading session. The stock rose another 0.8% after hours and ended the after-hours session at $24. Compared to its low of $18.47 on Wednesday, the stock is now up 30% in just two days.
Plans for Capital Increase
On Wednesday, DeFi Development Corp. announced its intention to raise $112.5 million through private placements. This offering is expected to close on Monday. Of the proceeds, $75.6 million will be used to fund a prepaid forward stock purchase transaction, while the remainder will go toward general corporate purposes, including buying SOL for its treasury.
Recent strategy by DeFi Development Corp. to increase its holdings in Solana and its capital raising plans illustrate the company's aim to strengthen its market position.
