Nasdaq-listed investment firm DeFi Development Corp. (DFDV) announced a new strategic acquisition of Solana (SOL). However, the DeFi Development stock value per share drop has raised concerns. The company confirmed the purchase of $16 million in SOL, while its share metrics show dilution. The official announcement came directly from the DeFi Dev Corp. X (formerly Twitter) account.
The company detailed the operation in its statement. They acquired an additional 86,307 SOL. The average purchase price was $110.91 per token. This move increases the firm’s total treasury to 2,195,926 SOL. These reserves are currently valued at $426 million. Although the treasury grew by 4.7%, the SOL-per-share value experienced a notable fall. The metric plummeted 25%, dropping from $19.44 in September to just $14.67.
Aggressive Strategy: DFDV Increases SOL Holdings
The apparent contradiction is explained by share dilution. DeFi Development reported 28.8 million outstanding shares. However, this figure did not count already-exercised pre-funded warrants. The adjusted share count rises to 31.9 million. This dilution outpaced the treasury’s growth rate. Despite this, the company asserted that SOL per share will not fall below previous levels.
DFDV’s strategy includes staking its new SOL. They will use their own validators to generate native yield. This accumulation occurs in a complex context. Other companies with digital asset treasuries are facing difficulties. For example, Metaplanet’s shares fell 70% from their highs. A report from K33 Research notes that valuation premiums for these firms are compressing.
Why is the stock value per share dropping if the treasury is growing?
DFDV’s stock performance reflects this tension. Shares are up 1,898% year-to-date. Despite this, they trade 61% below their May peak. The company, founded by former Kraken employees, also manages a $100 million share repurchase program. This creates competing pressures: issuing warrants to fund SOL purchases while buying back stock.
The crypto treasury sector is facing a new phase. Analysts from Coinbase Research warn of a “player-versus-player” competitive stage. The days of guaranteed premiums seem to be over. DeFi Development, one of the largest public SOL holders, is betting heavily on Solana’s DeFi ecosystem. Its future success will depend on whether its accumulation strategy can overcome market compression and internal dilution.
