DeFi Development Corporation, a publicly traded company managing a Solana treasury, has increased its convertible notes offering to $112 million from an initial $100 million. Investors also have an option to add another $25 million within the next week.
The majority of funds, about $75 million, will be used for a prepaid forward stock purchase, allowing convertible note investors to hedge their positions without creating immediate stock market supply. COO and CIO Parker White explained this strategy helps reduce new stock entering the market when bonds convert.
The remaining proceeds, potentially $57 million if the additional notes are purchased, will support general operations and further Solana (SOL) acquisitions. Since April, the company has accumulated roughly 621,313 SOL—valued near $95 million—along with acquiring a Solana validator business. It also secured a $5 billion equity line of credit (ELOC) to fund strategic SOL purchases.
White emphasized that using both convertible bonds and equity lines diversifies the investor base to balance risk and return. Convertible bond investors are generally more risk-averse and seek downside protection, while equity investors accept more risk for greater upside exposure. This dual approach helps maximize capital raised with limited shareholder dilution.
Shares of DeFi Development Corp. (DFDV) closed Wednesday down nearly 3% at $20.39, after an intraday drop of about 10%. The stock remains up over 2,300% year-to-date. Meanwhile, Solana’s price rose 5% in the past 24 hours, trading above $152, though still nearly 48% below its January peak of $293.31.