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DeFi Development Corp. secures a $5 billion credit line to expand its bet on Solana
The firm, which is listed on Nasdaq, aims to establish itself as the largest public holder of SOL and as a liquidity engine in the network.
DeFi Development Corp., the U.S. company listed on Nasdaq and focused on accumulating Solana (SOL), has taken a decisive step to expand its crypto treasury. The company signed a stock purchase agreement, known as an Equity Line of Credit (ELOC), with RK Capital Management LLC, which will allow it to issue and sell up to $5 billion in common stock gradually and strategically.
Unlike traditional funding rounds, where capital is raised in a single issuance at a fixed price, this model allows DeFi Development to sell shares when the market is favorable. Thus, the company can avoid unnecessary dilutions and take advantage of better conditions to maximize the funds allocated for the purchase of Solana.
CEO Joseph Onorati emphasized that this flexible structure is key to the sustained growth of the company: "It is a clean and strategic path to continue purchasing SOL per share and the performance of the validators," he stated. The strategy aims not only to increase the number of SOL tokens per share but also to enhance the passive income derived from operating validator nodes on the Solana network.
The operation positions DeFi Development as the largest public holder of SOL, with over 609,000 tokens in its portfolio, valued at over $100 million after its latest acquisition in May. The goal is to strengthen long-term exposure to Solana and provide shareholders with direct access to the returns of the blockchain ecosystem.
To activate the credit line, the company must submit Form S-1 to the U.S. Securities and Exchange Commission (SEC), a requirement that will allow RK Capital to legally resell the acquired shares. Additionally, DeFi Development has submitted another Form S-1 to register shares from previous funding rounds.