DeFi Development Corp. Stock Rises as Solana Firm Boosts Buyback Plan to $100 Million

Shares in Solana treasury company DeFi Development Corp. (DFDV) surged by as much as 6% before retracting, following the announcement that the firm boosted its share repurchase program from $1 million to $100 million.

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Currently, DFDV is trading at $15.73, which is an increase of nearly 4% for the day. The stock has skyrocketed over 2,100% year-to-date, although it has dropped 12% during the past week of trading.

Strategic Buybacks for Long-Term Growth

“Ultimately, 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,” DFDV’s COO and CIO Parker White shared with the news.

He further elaborated, “Our goal is to maximize SPS growth, so depending on the mNAV, we may deploy additional cash into share buybacks or SOL purchases.”

Similarly, other publicly traded digital asset firms, such as Ethereum treasury SharpLink Gaming, are also indicating that their share repurchase programs will activate when their net asset value—or crypto holdings—exceeds the company’s trading market cap.

This scenario is currently applicable to DeFi Development Corp, which possesses approximately $452 million worth of Solana in its treasury, while its market cap stands at around $395 million at its present trading price. This results in an mNAV—or ratio of market cap to crypto holdings—below 1.

“We wanted to have the flexibility to conduct buybacks if the mNAV falls deeply below 1 for a sustained period,” explained White regarding the firm’s expanded repurchase initiative.

Since undergoing a name change from Janover to DeFi Development Corporation in early April, the AI-driven real estate software firm has intensified its engagement within the Solana ecosystem. In May, it acquired a Solana validator business for $3.5 million in DFDV stock and cash. Furthermore, the firm has partnered with the popular Solana meme coin BONK, launched its own liquid staking token, and set up a $5 billion equity line of credit (ELOC) to facilitate future acquisitions of Solana.

Currently, the firm holds 2,095,748 SOL on its balance sheet, making it the second-largest publicly traded Solana treasury firm globally.

As for Solana, it has seen a 1% dip over the last 24 hours, trading at $215.61. The asset has underperformed against its major peers in the past week, experiencing a decline of approximately 9%. Analysts suggest that corporate purchase pricing and deleveraging pressures could be contributing factors.

This underperformance has influenced Myriad’s forecast on Solana’s all-time market high, as predictors are now evenly split—50-50—on whether the token will surpass its previous all-time high of $293.31 by the end of this year. This marks a 12% decrease from Monday’s projections, where predictors were optimistic, assigning a 62% chance for a new Solana all-time high by 2025.