DeFi Development Reports Strong Growth in Solana Holdings and NAV

DeFi Development Corp. (DFDV), a Nasdaq-listed company focused on Solana (SOL), reported strong preliminary results for the third quarter. As of September 30, the company saw its net asset value (NAV) per share more than double compared to August 12. Additionally, its Solana holdings per share grew by double digits in the same period.

DFDV increased its SOL holdings by approximately 26,203 tokens since September 28, bringing its total to about 2.56 million SOL and SOL equivalents. These holdings are currently valued at $302 million, an 11% increase since the company's last earnings update on August 12. The company has been actively acquiring more SOL through a $300 million at-the-market (ATM) program for its CHAD preferred stock, which was established in September.

The company's CEO, Joseph Onorati, highlighted the progress in a statement, noting that the strategy aims to raise capital, accumulate SOL, generate yield, and increase SOL per share. He described the company's approach as a 'capital flywheel' designed to enhance the value of each common share over time. The preliminary figures are still subject to finalization, but the company reported significant growth in cash and cash equivalents, along with a decline in SOL-denominated borrowings.

DFDV also marked a milestone with the payment of its first dividend for CHAD on October 1. The variable-rate preferred stock carries a 13% annual dividend rate on its $10 stated amount, equivalent to $1.30 per share annually. The company launched CHAD in September through an $11 million offering, positioning it as another source of capital for SOL purchases without diluting common shareholders.

In early trading on Monday, DFDV shares were up about 2%. However, the stock has declined nearly 70% over the past year.