CMC News

DeFi Development Boosts $SOL Buyback Program to $100M

The Solana #treasury firm has increased its share repurchase authorization from $1 million to $100 million, causing DFDV shares to jump as high as 6% before retracing. The stock traded 4% higher at $15.73, maintaining its position as the second-largest publicly traded Solana treasury company.

COO and CIO Parker White explained that buybacks serve as a tool to grow Solana-per-share holdings long-term. The firm will evaluate buyback usage against other opportunities to maximize SPS growth, deploying additional cash into share repurchases or $SOL purchases, depending on market conditions.

#DeFiDevelopment currently holds around $452 million worth of Solana but trades at just a $395 million market cap. This gives the company an mNAV ratio below 1, meaning its crypto holdings are more valuable than its trading market capitalization.

White noted the increased repurchase program provides flexibility to conduct buybacks if the mNAV falls deeply below 1 for sustained periods. Other publicly traded digital asset companies like #Ethereum treasury #SharpLink Gaming have signaled similar strategies when net asset values exceed market caps.

The AI-powered real estate software firm launched its #Solana treasury strategy in early April after changing its name from Janover to DeFi Development Corporation. The transformation reflected its commitment to digital asset operations and Solana ecosystem integration.

Since April, the company has deepened its Solana involvement through multiple strategic initiatives. These include purchasing a Solana validator business for $3.5 million, partnering with popular meme coin $BONK, launching its own liquid staking token, and establishing a $5 billion equity line of credit.

The firm now holds 2,095,748 $SOL tokens on its balance sheet, making it a significant player in the digital asset treasury space.