DeFi Development Corp (DFDV), a prominent platform for commercial real estate financing, saw its shares drop by 4.4% in premarket trading to $20.09 following a successful capital raise.
The Boca Raton, Florida-based firm, previously known as Janover, has announced the pricing of its $112.5 million worth of 5.5% 5-year convertible bonds. This offering size is a significant increase from the initial $100 million, with the initial conversion price of $23.11 being 10% above the stock’s last close.
The company plans to allocate a section of the net proceeds for general purposes, which includes the acquisition of the cryptocurrency Solana (SOL=). An estimated $75.6 million is intended to fund a prepaid forward stock purchase transaction, aiding in hedging by certain investors.
On April 7, we saw a group of former Kraken cryptocurrency exchange executives acquire a majority stake in the company, with the new leadership expressing plans to purchase Solana and hold it as a treasury reserve asset.
In early May, the company announced a ticker symbol change to DFDV. The company has approximately 14.7 million shares outstanding for a market cap of roughly $310 million, reflecting a 7-for-1 reverse stock split in May.
DFDV shares closed down 2% at $21.01 on Tuesday. The stock previously closed at $5.39 on April 7 and has traded as high as $53.88 on May 22.
