DeFi Development Corp. (DDC) has significantly boosted its Solana (SOL) holdings. The company now holds over 1.3 million SOL tokens. This impressive stash is worth nearly $250 million. DDC also reported a 47% increase in its value per share since June.
The company shared these details in a recent letter to shareholders. In just the first two weeks of August, DDC acquired more than 4,500 SOL. This means the company is earning about $63,000 in digital currency every single day.
DDC also had a strong financial July. It raised $165 million in net capital. Its share price per unit (SPS) went up by 34% that month.
A Business Plan with a Smart Twist
DDC operates like many other crypto investment firms. It brings in money from qualified investors. This capital then funds purchases of digital assets. The business model brings to mind Michael Saylor’s strategy at MicroStrategy. But DDC’s CEO, Joseph Onorati, points out a key difference. He says Solana offers advantages over Bitcoin. Solana’s design allows for income generation through “staking.”
Staking means holding cryptocurrencies to support a network. In return, you earn rewards. DDC uses this method to grow its assets. The company recently completed a $122.5 million convertible debt issuance. Investment bank Cantor Fitzgerald led this deal. This funding helps DDC expand its SOL position even further.
Strong Performance and Network Growth
DDC tracks its success using something called “Annualized Organic Yield” (AOY). This metric measures how well their staking and validation operations perform. The company estimates an AOY of 10%. This translates directly into those daily earnings of around $63,000 in SOL. These figures are based on their current 1.3 million SOL token reserve.
The second quarter saw DDC expand its validator setup. They also added new third-party delegations. Plus, they increased their share of staking rewards on the Solana network. DDC was founded by former executives from Kraken. The firm even signed a special agreement to be a validator for the Kraken exchange itself.
Branching Out and Community Ties
Beyond its main focus on SOL, DDC runs validator nodes for some Solana-based memecoins. This includes tokens like Dogwifhat. The company shares staking income with these coin communities. This approach helps build stronger relationships with new projects in the crypto space.
In traditional finance, DDC also showed solid results. The company reported income of $1.98 million for the quarter. This is a big jump from $400,000 in the same period last year. Net profit reached $15.4 million. This is a positive shift from an $800,000 loss in 2024.
Onorati highlighted the company’s shares, known as SPS. The value per unit is currently 0.0619. This marks a 47% increase since the end of June. The company experienced rapid growth in July. They raised $165 million in net capital. The SPS also saw a 34% monthly increase.
DeFi Development Corp. shares closed up 18% on Tuesday. They reached $17.84. The stock gained another 6% in after-hours trading.