Solana Treasury Firm Defi Development Corp. Increases convertible notes and offers $ 112 million

Shares of listed traded Solana Treasury Company Defi Development Corporation ended the Handelsdag according to the word that the company has its latest convertible notes up to $ 112 million.

For the first time, the company announced a new convertible banknotes of $ 100 million on Tuesday before it increased to $ 112 million on Wednesday, with an option for the first buyers to add another $ 25 million in the next seven days.

The majority of the net proceeds of this increase will be used for a prepaid stock purchase transaction of approximately $ 75 million, intended to allow selected investors in convertible banknotes to cover their investments.

“The Prepaid Forward is an instrument with which the convertible bond investors can shorten the Synthetic Short shares without short shortages,” Defi Development Corp. Coo and Cio Parker White told Decrypt. “This also means that if/when the convertible bonds convert into stock, there will not be so many new stock of shares on the market, because those shares have already been purchased in advance by DFDV.”

The remaining net revenue, which could be around $ 57 million if investors buy the extra $ 25 million in convertible banknotes, will be used for general purposes and extra Solana purchases.

The company, which started its Solana Treasury strategy at the beginning of April, has already collected 621,313 Solana or around $ 95 million via purchases, plus it A Solana Validator Company taken over. Defi Development Corp. Also has one $ 5 billion of credit stock line (ELOC) to help feed the “strategic” solana purchases.

“A healthy capital structure has several types of investors with different risk/efficiency profiles. The convertible bond enables us to attract capital of convertible bond investors, most of whom do not buy equity,” said White of the decision to use convertible bank notes with this increase.

“Convertible bond investors of their nature are more risk-suffering and are willing to trade some upward exposure for some downward protection,” he added. “The stock line of Krediet, on the other hand, enables us to attract capital from stock investors who want more upward exposure and are ok with a more disadvantage.”

According to White, the capital of both types of investors has the company maximized the funds that it can collect to buy Sol, without diluting shareholders.

DFDV shares closed almost 3% on Wednesday at $ 20.39, still more than 2,300% years to date. The price fell by around 10% earlier in the day before it was tapping again.

Solana (SOL) has risen by 5% in the last 24 hours and acts above $ 152, about 48% discount on his high January of $ 293.31.

Published by Andrew Hayward