DeFi Development Corp. rose 17% on Thursday (July 3) after announcing it had purchased $2.7 million worth of Solana as part of its ongoing financial strategy.
The stock price had already increased the day before following the company's release of its June business update, which included plans to raise $112.5 million.
DeFi Development Corp. stated on Thursday (July 3) that it purchased 17,760 Solana (SOL) tokens at an average price of $153.10 each, totaling $2.72 million. After the acquisition, the company holds a total of 640,585 Solana, valued at approximately $98 million.
The company indicated that it plans to hold the newly purchased tokens for the long term and will stake these tokens to generate returns.
In April of this year, DeFi Development Corp. announced plans to raise $1 billion to invest in Solana. However, on June 12, the company had to withdraw its application after the U.S. Securities and Exchange Commission stated that it failed to submit its management report by the deadline.
Investors welcomed the recent developments, with DeFi Development Corp. stock (DFDV) rising nearly 17% during Thursday's trading session to $23.80.
According to Google Finance, the stock price increased by another 0.8% after the market closed, reaching $24 by the end of after-hours trading.
Compared to the low of $18.47 on Wednesday, the stock price has risen 30% in just two days. It has surged over 2733% year-to-date; however, it is still down 33% from the peak of $35.53 on May 21.
In the March quarter, the company reported a 30% year-over-year decline in net income and a 15.5% drop in net profit margin.
In a letter to shareholders on July 2, the company stated that its goal is to maintain capital flexibility and protect investors from short-term liquidation risks. The company further added that its balance sheet is "well-structured to withstand long-term downturns and support long-term net asset/share stability."
On Wednesday (July 2), DeFi Development Corp. announced it would raise $112.5 million through a private placement. The issuance is expected to be completed on Monday.
The company will use $75.6 million of the net proceeds to fund pre-paid forward stock purchase transactions. Additionally, the company will use the remaining proceeds for general corporate purposes, including purchasing SOL for its finances.
Related: U.S. Senator Cynthia Lummis drafts independent crypto tax legislation
Original: “Solana Treasury Firm Extends Rally After Buying $2.7 Million of SOL”
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