Defi Development announced a new range of $ 100 million in private convertible notes, with the aim of implementing the Microsstrategy acquisition plan with Solana.
However, this ambitious plan can be confronted with a setback, because the share price fell more than 9% after the sale announced. Solana’s own achievements have been wobbly and this effort can reflect its own appetite of the crypto market.
Can Defi Development buy enough Solana?
Since MicroSstratey kicked off the trend, companies have built Bitcoin stocks around the world. This phenomenon may have in -depth implications for BTC, but it is usually insulated from this active.
The development of Defi, however, a new path and breaks to Solana as his favorite assets:
According to this plan, Defi Development wants to pick up $ 100 million to buy more Solana. If the offer goes well, it can be an increase of $ 125 million, with the convertible senior notes in 2030.
Moreover, an unprecedented part of the proceeds will go to stock buying as part of a prepayment to manage the portfolio risk. This indicates a well -considered strategy.
Previously, the company was a commercial real estate company called Janover. However, it was renamed Defi Development in April, with the intention of fully committing Sol.
The SEC rewred its original plan to raise $ 1 billion through the sale of securities for Solana purchases, but it has access to alternative sources of financing to start acquiring assets.
As it looks now, the plan currently has considerable advantages and disadvantages. Unfortunately, Defi Development will have to compete with Solana’s recent price problems.
Although Sol had a positive momentum at the end of May, it saw setbacks in June and it is confronted with Beerarish Markttrends in July. Today, the price of the active fell by 6%has fallen.
Defi development, however, can have an important influence on Solana. While most company owners of companies follow microstrategy, this company can be a market relocation for SOL.
The Saylor company is a pillar of trust in BTC, with its constant purchases that help the price to float. Defi Development’s own investments can perform the same function.
Yet there is a lot of uncertainty involved. First, if the company wants to buy $ 100 million in SOL, it must sell an equivalent amount in shares. Defi development may find insufficient institutional interest, given the Solana market.
Since the statement of the notepad, the shares of Defi Development have fallen more than 9% on the trade after hours. The recession started less than 30 minutes after the company’s social media announcement, which can be a bad sign.
Defi development point of view. Source: Google Finance
Whether the company succeeds or failed, this supply offer will offer useful data about the appetite of the market and the viability of crypto acquisition strategies for companies.
