$100M Solana bet – DeFi Development plans MicroStrategy-style crypto move
Capital inflows into SOL surged to $1B by the end of June - Will it continue in July?
- DeFi Development plans a $100M-$125M raise to scale its SOL strategy
- A trader termed the staking ETF update a “sell-the-news” event, but SOL could still rally
Solana [SOL] has been attracting massive interest from crypto corporate treasury firms lately.
On 1 July, DeFi Development (formerly Janover), announced a $100 million MicroStrategy-style private convertible note offering (debt) to raise capital for its aggressive SOL strategy.
According to the firm’s statement, the offering can be upsized to $125 million and will be deployed in two ways,
“The proceeds will go to accumulate more $SOL and support general corporate growth. A portion will be used to repurchase DFDV stock via a prepaid forward.”
609K SOL accumulated and counting
The real estate firm quickly pivoted to crypto treasury strategy in April after being acquired by former employees of Kraken crypto exchange.
As of July, the firm had acquired 609,092 SOL tokens. Overall, DeFi Development Corp holds 621,313 SOL right now, including its liquid staked SOL.
Another rival, Canadian-based SOL Strategies, also increased its holdings by 163k SOL in June. Now, the firm holds 3.7 million staked SOL to validators to increase revenue streams (staking rewards), while benefiting from potential price appreciation.
In fact, SOL staking could pick up momentum after the SEC approved the first-ever U.S spot ETF with staking provision.
Still, Brandon Hong, crypto analyst and trader, made a bearish call and went short on SOL. Hong argued that the staking approval is a “sell-the-news event,” while projecting a potential dump to $142.
The altcoin’s recent price action somewhat cemented his thesis. SOL dumped by 5% after the update, bringing its recent losses to 9%.
Despite a slight bounce off $144 at press time, the RSI rejection at the mid-range meant SOL could still ease to $140 area. Hong’s projection would be validated if SOL tags the support zone at $140 (white).
However, this could be just a temporary cool-off before lift-off with institutions jumping on SOL.
In fact, towards the end of June, SOL’s realized cap surged from $77 billion to $78 billion, hinting at massive capital inflows into the market. This marked a recovery attempt from late Q2 outflows and could push SOL higher if the trend continues.
