DeFi Development Corp, formerly known as Janover, plans to raise more than $1 billion to invest in Solana — currently the sixth-biggest cryptocurrency by market value. The Nasdaq-listed company, formerly a platform for connecting commercial real estate lenders and buyers, outlined its new plans in a Form S-3 registration statement filed with the U.S. Securities and Exchange Commission (SEC) on Apr. 25.
The filing mentions that it aims to use the funds for general business needs, like buying more Solana tokens. According to the filing, the firm might use the funds from the offering to buy more Solana, noting:
Solana does not pay interest, but staking rewards can be earned on Solana. The ability to generate a return on investment from the net proceeds from this offering will depend on whether there is appreciation in the value of Solana following our purchases of Solana with the net proceeds from this offering.
Solana price fluctuations and treasury risks
The company also cautioned that fluctuations in Solana’s price might result in converting the tokens into cash at a value “significantly lower” than the net proceeds raised. Janover was a real estate financing company that linked lenders and buyers of commercial properties before a group of former Kraken exchange executives purchased 728,632 shares of its stock.
As a result, Kraken’s former Chief Strategy Officer, Joseph Onorati, was appointed as the new chairman and CEO. The announcement follows the leadership at DeFi Development Corp. implementing the Solana treasury reserve. They’re using a proven public-market treasury model, applying it to an asset that’s still early in its development, highly responsive, and far less recognized than Bitcoin.
The company’s new Solana investment treasury has compared to Michael Saylor’s strategy, which has successfully accumulated over 538,200 Bitcoin, the largest corporate Bitcoin holder in the world. The DeFi Development Corp. board of directors approved a new treasury policy focused on Solana on Apr. 4. This decision follows the long-term accumulation of SOL and the launch of Solana validators to stake its treasury assets.
