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DeFi Development Corp. expands Solana treasury strategy

Source: AI Generated

NEWS IN BRIEF
  • DeFi Development Corp. expands its Treasury Accelerator program, investing $5–75 million per digital asset treasury to acquire more Solana (SOL).
  • The firm’s strategy creates a SOL treasury flywheel, converting DAT profits into additional SOL to increase shareholder value.
  • Investments are made via equity, convertible instruments, or debt, with funding provided in cash or SOL, supporting global adoption of Solana treasury strategies.

DeFi Development Corp., a Solana-focused decentralized finance firm, has announced the expansion of its Treasury Accelerator program, signaling growing institutional interest in altcoins. The program aims to deploy capital into digital asset treasury products (DATs), with profits recycled to acquire additional Solana (SOL) tokens, further strengthening the company’s balance sheet.

The firm revealed that it will assign between $5 million and $75 million to each DAT, using equity placements, convertible instruments, or debt financing. Funding may be provided either in cash or in SOL tokens.

Treasury Accelerator is built to catalyze DATs globally intend to back the most promising DATs worldwide, and use the returns to grow SOL per share for the shareholders.

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Driving a Solana treasury flywheel

The expansion is designed to create a self-reinforcing SOL treasury flywheel. If an invested DAT appreciates in value, DeFi Development Corp. will convert a portion of profits into cash to purchase more SOL, increasing its SOL-per-share metric and delivering additional value to shareholders.

This strategy not only accelerates the firm’s own Solana accumulation but also promotes the adoption of SOL treasury strategies globally. By reinvesting profits into Solana, the company can raise additional capital for future DAT investments, compounding growth over time.

Digital asset treasuries, in this context, refer to crypto-native funds that manage investments fully on-chain, allowing for transparency and streamlined capital allocation.

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