Defi Development Corp Upsizes Convertible Note Offering to $112.5 Million
Defi Development Corp (DFDV) is issuing $112.5 million in convertible notes to fund a stock buyback and increase its holdings of Solana (SOL). Key details include:
- The offering was increased from an initial $100 million.
- The notes will mature in 2030 with a 5.5% annual interest rate.
- Investors can convert debt into equity at $23.11 per share, approximately a 10% premium on Monday's closing price.
- There is an option for investors to purchase an additional $25 million in notes.
- DFDV shares fell by 12% early Wednesday, over 60% lower than May's peak, despite a 3,500% increase linked to the firm's crypto strategy.
- $75 million of the proceeds will fund a prepaid forward stock purchase transaction to hedge convertible note positions.
- The remaining capital will support general corporate use and further SOL acquisitions.
Defi Development, previously Janover, joins other publicly-traded companies acquiring cryptocurrencies, following a recent $5 billion equity line of credit with RK Capital Management.