DFDV Expects Cash to More Than Double and SOL Borrowings to Shrink Ahead of Q3 Results
Key Takeaways
- •DeFi Development Corp. expects its NAV per share to have risen more than 100% in roughly seven weeks, with double-digit growth projected in both SOL per common share and total SOL.
- •The company's Solana treasury climbed to approximately 2,564,212 SOL and equivalents, worth about $302 million, an increase of around 11% since its August earnings update.
- •DFDV's CHAD preferred stock paid its first dividend on Oct. 1 at a 13% annual rate on its $10 stated amount, with payouts supported by validator fees and staking rewards generated within the treasury.
- •A $300 million at-the-market program for CHAD preferred stock supplies separate capital for continued SOL purchases.
- •DFDV shares closed about 4% higher on Monday but remain down roughly 66% over the past year, while the company said SOL beat the Nasdaq-100 by 56% in the third quarter and DFDV outperformed SOL by 1.5x.
DeFi Development Corp. (NASDAQ: DFDV), a Solana treasury company, told investors on Monday that it expects its cash and cash equivalents to have more than doubled between Aug. 12 and Sept. 30, alongside a decrease in notional SOL-denominated borrowings over the same period.
Both figures come from the company's preliminary third-quarter estimates. Its treasury now sits near 2.56 million SOL.
NAV per share up more than 100% about seven weeks
DFDV expects its net asset value (NAV) per share to have increased by more than 100% in roughly seven weeks. The company defines NAV as cash plus SOL holdings, minus SOL-denominated liabilities, other debt and preferred equity. NAV per share is calculated as NAV divided by adjusted common shares, which include restricted stock units, vested options and in-the-money warrants and convertibles. DFDV noted that neither measure constitutes GAAP book value.
The company also anticipates double-digit growth in SOL per common share and in total SOL, while cautioning that the figures are unaudited and remain subject to the financial close. Per-share yardsticks like these are the metrics digital-asset treasury companies emphasize because adjusted share counts — which already include warrants, options and convertibles — can expand even as the asset base grows, making growth in SOL per share and NAV per share a direct read on how much value each common share controls.
Treasury holdings climbed to approximately 2,564,212 SOL and SOL equivalents, worth about $302 million. DFDV added close to 26,203 tokens after Sept. 28, and holdings have advanced about 11% since the August earnings update.
"The DFDV ship is flying at lightning speed," CEO Joseph Onorati said in a statement. "We expect to report double digit growth in SOL per share and more than a doubling of NAV per share since our August update," Onorati added.
CHAD preferred stock pays first dividend at 13% annual rate
DFDV said a $300 million at-the-market program for CHAD, its preferred stock trading on Nasdaq, furnishes new capital for SOL purchases. CHAD paid its first dividend on Oct. 1, carrying a 13% annual rate on its $10 stated amount — equivalent to $1.30 per share per year, payable every business day when declared.
The company said organic income from validator fees and staking rewards generated within its SOL treasury provides the capacity to cover the dividend, an arrangement that ties preferred payouts to yield produced inside the treasury while ATM proceeds supply separate capital for continued SOL accumulation.
SOL outperformed the Nasdaq-100 by 56% in the third quarter, and DFDV outperformed SOL by 1.5x, according to the company.
DFDV stock closed about 4% higher on Monday but remains down roughly 66% over the past year, a stretch in which Solana treasury firms have lost heavily. The company's full third-quarter figures, once the financial close is complete, will put final numbers behind the preliminary ranges.
The preliminary estimates were disclosed in an official press release and announced via the company's X account.
