DeFi Dev Corp sets $73.5M funding target for SOL purchases

DeFi Dev Corp., one of the first Solana DAT companies, announced a special shareholder dividend in the form of tradable warrants. One warrant will be assigned for every 10 shares held through October 23. 

DeFi Development Corp. (DFDV) announced a special dividend to be distributed in the form of warrants. All holders of common stock that do not sell through October 23 will be eligible to receive one tradable warrant per 10 shares. 

Each warrant will entitle the holder to purchase one share of common stock at an exercise price of $22.50 at any time until the warrants expire on January 21, 2028. Warrants are only valid if the stock price is payable in cash. If shares are held with brokerages, it may be up to the broker to obtain the warrants, especially in the case of share lending.

DeFi Dev Corp. warrants will become immediately tradable

The warrants will also be listed immediately after distribution on the Nasdaq Capital Market under the ticker DFDVW. After the distribution date, holding or trading the warrants will not be tied to holding shares of common stock. 

“This special dividend reinforces our confidence in DFDV’s trajectory and our belief in transparent, shareholder-aligned capital formation,” said Joseph Onorati, the Company’s Chief Executive Officer. “By issuing tradable warrants, we’re empowering investors to participate in future expansion while preserving long-term value for existing shareholders.”

Each registered stockholder will receive one warrant for each 10 shares, rounded to the nearest whole warrant. Holders of Convertible Senior Notes due 2030 will receive warrants on an as-converted basis instead of delaying the dividend with adjusted conversion. 

A total of 3.3M warrants are expected on or around October 27, based on shares and Convertible Senior Notes currently outstanding. No other action will be required of the company’s holders. Further information on previous and current warrants is available through the company’s dashboard. 

The warrant dividend was a way for DFDV stockholders to participate in new capital raising without dilution. Under full exercise of the warrants, the company would receive up to $73.5M in gross proceeds, which would go toward the acquisition of SOL, working capital, and general corporate purposes. 

DeFi Dev Corp. paused its SOL acquisitions

DeFi Dev Corp. is still the third-largest holder of SOL in its treasury, with a little over 2M tokens. SOL treasuries are growing more slowly after the initial hype, still locking in just 17.80M SOL, of which 11.15M are staked. 

Previously, the company launched a program to improve its balance through a $100M share repurchase plan.

Following the warrant dividend announcement, DFDV shares traded with little change at $15.38. The common stock is down from its peak above $35, despite the recent SOL market recovery. Based on the current warrant conditions, the holders may have to wait until a favorable time to exercise, as the warrant price is below the current market price.

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