DeFi Development Corp., a publicly traded firm, has entered an agreement with RK Capital for a $5 billion equity line of credit. The arrangement allows DeFi Development Corp. to issue and sell up to $5 billion in common shares to RK Capital, which will enable the company to purchase more Solana (SOL) tokens.
CEO Joseph Onorati explained to Decrypt that the equity line provides flexibility to raise capital gradually, avoiding high-leverage or short-term debt, and aims to increase SOL per share. The firm will raise funds only when it benefits long-term shareholders, typically when its stock trades at a premium to net asset value and presents an accretive opportunity.
Since adopting its Solana treasury strategy in April, DeFi Development Corp. has acquired nearly $100 million in SOL, holding over 620,000 tokens. The company also rebranded from Janover to DeFi Development Corp., signaling a deeper commitment to crypto. It purchased a Solana validator business for $3.5 million and partnered with the Solana meme coin community BONK. In addition, it launched its own liquid staking token to provide liquidity while earning yield from its validator set.
Shares of DeFi Development Corp. have surged 21% today and 115% over the past week. In contrast, Solana’s price has declined 3.4% in 24 hours but is up about 5% over the week, trading at $157.66.
Recently, the company withdrew a Form S-3 registration statement with the SEC related to a planned $1 billion fundraising to purchase SOL. The impact of this withdrawal on its Solana acquisition plans was not immediately addressed by the firm.