DeFi Development Corp has unveiled plans to raise $100 million through a private offering of convertible senior notes to strengthen its Solana-focused treasury strategy as anticipation for potential U.S. approval of Solana exchange-traded funds (ETFs) ramps up.
DeFi Development Corp. said proceeds will be used partly to repurchase its own shares through a prepaid forward agreement with a note purchaser, while the remaining funds will go toward general corporate purposes, including acquiring more Solana (SOL) as part of its asset accumulation strategy.
The company, which is the first publicly listed firm in the U.S. to pursue a Solana-based treasury model, announced on July 2 that the notes will mature in July 2030 and pay interest twice a year.
The unsecured notes will be offered to qualified institutional buyers under Rule 144A of the Securities Act, with buyers granted an option to purchase an additional $25 million within 13 days of the initial issuance.
Prior to January 2030, conversion into company stock or cash will only be allowed under certain conditions. After that, holders can convert the notes at any time before maturity, with the settlement method determined during pricing.
The fundraising follows a June regulatory setback for the firm, which forced it to withdraw a planned $1 billion registration filing after the Securities and Exchange Commission (SEC) deemed it ineligible for the streamlined S-3 form due to a missing internal controls report in its annual filing.
That filing, submitted in April, was intended to raise capital to build a substantial SOL treasury, similar to strategies used by companies holding Bitcoin to drive long-term value through staking and price appreciation.
The company’s latest capital raise comes shortly after its stock fell 16% on June 24, indicating an effort to bolster its balance sheet and reassure investors as interest in Solana-based investment products grows.
Recent ETF launches have added momentum to the market. On June 1, Rex Shares and Osprey debuted the SOL + Staking ETF ($SSK), the first U.S. fund providing staking exposure by allocating 40% of assets to overseas Solana products to comply with regulatory requirements.
One day earlier, the SEC approved Grayscale’s Digital Large Cap Fund to convert into an ETF, adding indirect exposure to Solana alongside Bitcoin, Ethereum, XRP, and Cardano.
As the SEC considers multiple crypto ETF proposals, DeFi Development Corp’s move positions it to benefit from any increase in institutional demand for Solana. The offering remains subject to final pricing and market conditions, and the company has not disclosed when the transaction will close.
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