DeFi Development Corp. (DFDV), a publicly listed company holding Solana, has increased the scale of its latest convertible bond offering to $112 million. Although DFDV's stock ended the trading day down nearly 3%, at $20.39, it has still risen over 2,300% year-to-date.

Capital usage plan and financial strategy

Initially, the company announced plans to raise $100 million on Tuesday, later increasing it to $112 million on Wednesday, along with an option for initial bond buyers to add another $25 million in the next seven days.

The majority of the funds raised from this offering, approximately $75 million, will be used for prepaid forward stock purchases, aimed at helping convertible bond investors hedge their risks. Parker White, COO and CIO of #DeFiDevelopmentCorp , explained that this transaction allows investors to 'synthetically short the stock without having to short the stock in the market,' while also helping to reduce the amount of new shares entering the market when the convertible bonds convert into shares.

The remaining funds, which could amount to approximately $57 million if investors purchase an additional $25 million in convertible bonds, will be used for general purposes and to buy more Solana.

Accumulation target for Solana and capital structure

DFDV began its Solana treasury strategy in early April and has accumulated 621,313 Solana, equivalent to approximately $95 million, through purchase transactions, plus the acquisition of a Solana validation company. The company has also raised $5 billion through an equity line of credit (ELOC) to support 'strategic' Solana purchases.

White stated that using convertible bonds in this offering allows the company to raise capital from a variety of investors with different risk/return profiles without diluting shareholders. Convertible bonds attract less risk-tolerant investors, while ELOC appeals to those looking for higher returns and willing to accept greater risk.

Raising funds from both types of investors allows DFDV to maximize the amount it can raise to purchase SOL without diluting the value of the stock. Currently, Solana (SOL) has risen 5% in the past 24 hours, trading over $152, about 48% away from its all-time high of $293.31 in January. #anhbacong