Nasdaq-listed firm DeFi Development Corp., formerly known as Janover, announced a significant crypto milestone. Focused on accumulating and compounding Solana (SOL), the public company plans to offer $100 million in convertible senior notes. This offer is scheduled to be made in a private placement to qualified institutional buyers in 2030.
The Florida-based company may also grant initial purchasers an option to buy up to an additional $25 million in notes within 13 days of issuance.
Defi Development Corp Stacks $100M
The public company plans to allocate part of the offering’s net proceeds to repurchase common stock shares through a prepaid forward agreement and use the remaining amount for general corporate purposes, including the acquisition of Solana (SOL).
The convertible notes will be senior unsecured obligations, accruing interest payable semi-annually starting January 1, 2026, with a maturity date of July 1, 2030. These notes can be converted into cash, common stock, or a combination of both, at the company’s discretion, subject to certain restrictions. The conversion rate, interest rate, and other terms will be determined during pricing negotiations with initial purchasers.
DeFi Development Corp plans to enter into a prepaid forward stock purchase transaction with an initial purchaser of the Convertible Notes, facilitating derivative transactions and swaps between the counterparty and Convertible Notes investors. This allows investors to hedge their investments and potentially establish short positions.
The company and forward counterparty won’t control how convertible notes investors use derivative transactions. This lack of control could lead to increased buying or selling of common stock, potentially affecting the market price of common stock and Convertible Notes.
The forward counterparty or its affiliates may adjust their hedge positions by entering into or unwinding derivative transactions related to the company’s common stock, or by buying or selling shares and securities in secondary market transactions. This could impact the market price of the common stock and Convertible Notes.
SOL Gains Momentum
In an evolving ecosystem, companies are exploring alternative cryptocurrencies other than Bitcoin. For example, DeFi Development Corp has chosen to invest in Solana (SOL). A few others include Newgen, which recently invested $30 million in a Solana staking strategy.
Solana’s growing prominence is driven by key developments, including President Donald Trump’s proposal to include it in a US strategic crypto reserve and the SEC’s acknowledgment of multiple SOL ETF applications from Fidelity, 21Shares, and Canary Capital. This indicates increasing institutional interest in Solana.
