š„ DeFi Development Corp. Stock Rises as Solana Firm Boosts Buyback Plan to $100 Million
Shares in Solana treasury firm DeFi Development Corp. (DFDV) jumped as high as 6% before retracing amid news the firm increased its share repurchase program from $1 million to $100 million
DFDV is now changing hands at $15.73, up nearly 4% on the day. Itās now up more than 2,100% year-to-date, but down 12% in the last week of trading
āUltimately, buybacks are a tool to grow Solana-per-share (SPS) long-term, so we will be regularly evaluating the usage of buybacks against our other opportunities to grow SPS long-term,ā DFDV COO and CIO Parker White
āOur goal is to maximize SPS growth, so depending on the mNAV, we may deploy additional cash into share buybacks or SOL purchases,ā he added.
Other publicly traded digital asset companies, like Ethereum treasury SharpLink Gaming, have signaled that use of their respective share repurchase programs will come when their net asset value-or crypto holdings-are more valuable than the firmās trading market cap, as well
Thatās the current situation for DeFi Development Corp, which holds around $452 million worth of Solana in its treasury, but trades at just a $395 million market cap at its current trading price, giving it an mNAVāor a ratio of market cap to crypto holdingsābelow 1
āWe wanted to have the flexibility to conduct buybacks if the mNAV falls deeply below 1 for a sustained period,ā said White of the firmās increased repurchase program.
The AI-powered real estate software firm kicked off its Solana treasury plans in early April, shortly after changing its name from Janover to DeFi Development Corporation to reflect its commitment to a digital assets play
Since that time, the firm has been further entrenching itself within the Solana ecosystem. In May, it purchased a Solana validator business for $3.5 million worth of DFDV stock and cash. Since that time, itās partnered with popular Solana meme coin BONK, launched its own liquid staking token.
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