Trends come and go in the crypto industry, but one is sticking around longer than expected. For a while now, many institutions have been investing in crypto, and yet another has revealed its plans to join the investment train.
DeFi Development has made some serious intentions known to the public. The company wants to raise $100 million for one simple reason: buying more Solana ETFs. Their strategy to raise the money is through a private offering of convertible senior notes.
1/ Today, we announce a $100M private convertible note offering, with plans to accumulate more $SOL. 🚀
— DeFi Dev Corp. (@defidevcorp) July 1, 2025
Here’s what it means. 🧵 pic.twitter.com/LGdJAuKDM6
The interesting thing about DeFi Development’s plan is that the ETFs the company wants to buy have not yet been approved. The corporation is banking on a possible green light for Solana Exchange-traded funds. Of course, there has been steady momentum around Solana ETFs, but DeFi Development’s plan is still hedged on a bet.
Suppose you're interested in helping out DeFi Development. In that case, you might still want to hold your horses because, according to the company, the offering will be made to only “qualified” institutional investors. The definition of “qualified investor” is contained in Rule 144A of the Securities Act.
Another interesting aspect of this whole business is that the notes DeFi Development is issuing are unsecured. They also mature as far away as July 1, 2030. And if you're looking to convert anytime before January 2030, you can only do so under certain conditions. To sweeten the pot, though, the notes carry interest payable twice a year.
Still on the notes, holders will be given the option to convert their holdings into either cash, company stock, or a mix of both if they so desire, depending on the terms agreed on during pricing.
It’s Not All About SOL ETFs
According to DeFi Development, the company will not use all of the money to buy Solana ETFs. Instead, it will use a part of the funds in a buyback campaign of its own common stock. The company will also use a part of the proceeds to support general operations and buy more Solana (SOL), which has been confirmed to be a central part of its asset strategy.
Regardless of how you view it, this is an ambitious plan from DeFi Development. Some might even call it shaky, as it follows a recent setback in the company’s trajectory. On June 11, the company withdrew its $1 billion registration filing with the SEC after an error was detected in its S-3 form. A missing internal controls report caused the company to be disqualified.
The discarded filing was intended to help the company raise enough capital to build a sizable Solana treasury. Well, if there’s anything to learn from these developments, it is that DeFi Development is not a sore loser. It couldn’t buy more Solana, so it went for Solana ETFs. Talk about forging on, huh?
Roman Zaika
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource, and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice. HODL FM strongly recommends contacting a qualified industry professional.
