Solana (SOL-USD) climbed sharply Monday after Florida-based real estate data firm DeFi Development Corporation (DFDV) revealed it had acquired nearly 1 million units of the cryptocurrency. The move highlights the growing trend among publicly traded companies to load up on digital assets as part of a broader corporate treasury strategy.
Nasdaq-listed DFDV, headquartered in Boca Raton, now holds 999,999 SOL tokens, the native asset of the Solana blockchain. “Between July 14 and July 20, it acquired 141,383 of SOL, roughly $19 million worth, at an average price of $133.53,” the company said. It also disclosed raising approximately $19.2 million in net proceeds via an equity line of credit by issuing 740,000 shares of common stock.
Despite the crypto accumulation, DFDV shares closed more than 3% lower on Monday. Still, the stock is trading at a remarkable 34 times its $0.67 opening price from the start of the year. It slightly rebounded in Tuesday’s trading session.
DFDV is now among more than 150 publicly traded firms adopting a so-called “crypto treasury” strategy, which centers on allocating capital primarily through issuing debt and equity to acquire crypto. “The technique was pioneered by Michal Saylor’s Strategy (MSTR), formerly MicroStrategy,” the article noted, referencing the 2020 shift when Saylor transformed his software company into a bitcoin-heavy investment vehicle.
Others following this model include GameStop (GME) and Trump Media (DJT), which just announced it purchased $2 billion worth of bitcoin. Companies like BitMine Immersion Technologies (BMNR), chaired by Fundstrat’s Tom Lee, are applying a similar approach using ether (ETH-USD), the second-largest cryptocurrency.
So far, these aggressive crypto plays have often triggered outsized stock gains, sometimes exceeding the value of the crypto holdings themselves. But skepticism lingers. “Short sellers see plenty of reasons to be skeptical about how long such a dynamic can last.” Adding to the concern, SOL — unlike bitcoin, which has a fixed supply of 21 million — has no maximum supply cap.
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