Solana Whale Defi Development Unleashes Massive $100 Million Stock Buyback
Defi Development Corp, a publicly listed company centered around a Solana-based treasury strategy, has significantly expanded its share buyback program to $100 million. This move marks one of the largest share buyback initiatives in the digital asset sector, underscoring the company’s commitment to enhancing shareholder value.
The decision, approved by the company’s board of directors, increases the initial $1 million authorization, allowing management to purchase regular shares on the open market in accordance with Rule 10b-18 of the Securities Exchange Act of 1934. The board’s approval offers flexibility for the company to buy back up to $100 million worth of shares, with an initial threshold of $10 million requiring notification to the board before proceeding with further purchases.
Defi Development Corp has been steadily accumulating Solana (SOL) for its treasury, with a recent purchase of 62,745 SOL announced on September 17, bringing the total holdings to 2,095,748 SOL, valued at approximately $499 million. This position equates to a value of 0.0816 SOL per share or about $19.44 per share, based on the company’s metrics. The tokens are staked through several validators, including the company itself, to generate yield.
Defi Development Balances Buybacks and Solana Accumulation in Bold Dual Strategy
The share buyback program follows regulatory setbacks earlier in the year. In June, the company withdrew a $1 billion registration with the US Securities and Exchange Commission after the regulatory body did not permit the use of the streamlined S-3 form, citing a missing management report on internal controls in its latest Form 10-K. Despite this withdrawal, the company has pushed forward with capital raising initiatives, including plans to collect $100 million through a private offering of senior notes due in 2030, with an option for an additional $25 million.
The proceeds from these initiatives are partially intended for stock buybacks, subject to prerequisites and further Solana accumulation. Defi Development Corp has recently expanded its operations internationally, signing a memorandum of understanding with Fragmetric to establish Defi Development Corp Korea, a Solana-focused digital asset treasury. This new initiative aims to expand the company’s Treasury Accelerator program into one of the world’s most dynamic trading markets.
Institutional Acceptance of Solana Accelerates
The institutional acceptance of Solana continues to gain momentum. According to Coingecko data, treasury companies now hold approximately 13.44 million SOL, valued at around $2.86 billion. This growth in institutional investment underscores Solana’s position as a growing hub for digital asset management and investment.
Companies such as Fitell Corporation, Brera Holdings, and Forward Industries are among those leading the charge in Solana adoption. Fitell recently secured a $100 million credit line to introduce a Solana-focused treasury strategy, marking a significant pivot for the company. Brera Holdings has closed an oversubscribed $300 million private investment in public equity (PIPE) from investors, including ARK Invest, to purchase Solana for its reserves. Forward Industries, the largest owner of Solana treasury, has collected over 6.8 million SOL and plans to tokenize its shares on-chain through the Superstate platform, enabling around-the-clock trading with immediate settlement and global liquidity.
These developments highlight the increasing interest in Solana among institutional investors, positioning the network as a key player in the digital asset sector. As more companies adopt Solana-focused strategies, the network’s potential for growth and adoption continues to expand.
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