DeFi Development Corp. surged another 17% on Thursday after announcing it had purchased $2.7 million in Solana as part of its ongoing treasury strategy.
The stock price had already rallied the day before as the company released its business update for June, including plans to raise $112.5 million.
DeFi Development Corp on Thursday said it bought 17,760 Solana (SOL) tokens worth $2.72 million at an average price of $153.10 per coin. After the acquisition, the company’s Solana stack stood at 640,585 SOL, worth approximately $98 million.
The company said that it intends to hold the recently purchased tokens long-term and that it will stake the aforementioned tokens to generate yield.
In April, DeFi Development Corp. announced that it would raise $1 billion to invest in Solana. However, on June 12, the company had to withdraw its filing as the US Securities and Exchange Commission said that the company had failed to submit a management report before the due date.
DeFi Development Corp. stock price rallies
Investors cheered the recent developments, as DeFi Development Corp. stock (DFDV) rose by nearly 17% to $23.80 in Thursday’s trading session.
The stock price increased another 0.8% after the bell and ended the after-hours trading session at $24, according to Google Finance.
Compared to its Wednesday low of $18.47, the stock is now up 30% in just two days. It has also soared by more than 2,733% year-to-date; however, it is down 33% from its May 21 peak of $35.53.
Related: DeFi Development Corp stock to go onchain via Kraken
For the March quarter, the company reported that its net revenue declined by 30% year-on-year, while its net profit margin fell by 15.5%.
In a July 2 letter addressed to shareholders, the company said that it aims to maintain capital flexibility and protect investors from short-term liquidation risks. The company further added that its balance sheet “is structured to weather prolonged drawdowns and support long-term NAV/share durability.”
DeFi Development Corp’s capital raise
On Wednesday, DeFi Development Corp. announced that it will raise $112.5 million via private placements. The offering is expected to close on Monday.
The company will use $75.6 million from the net proceeds to fund a prepaid forward stock purchase transaction. Additionally, the firm will use the remaining proceeds for general corporate purposes, including buying SOL for its treasury.
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