Janover (JNVR) - 2025 Q2 - Quarterly Results

Introduction and Company Overview DeFi Development Corp. (DFDV) released its Q2 2025 Shareholder Letter, detailing its Solana-based treasury strategy and operations in validator infrastructure, DeFi, and an AI-powered commercial real estate platform - The company's core treasury strategy is to accumulate and compound Solana (SOL)[2][5] - The business model includes holding and staking SOL, operating its own validator infrastructure to generate rewards, and participating in decentralized finance (DeFi) opportunities[5] - Alongside its crypto treasury, the company operates an AI-powered online platform for the commercial real estate industry, serving over one million web users annually[6][7] Letter to Shareholders & Core Strategy CEO Joseph Onorati emphasizes the primary objective of rapidly growing Solana Per Share (SPS) by deeply integrating with the onchain economy to bridge DeFi and Traditional Finance (TradFi) - The company's primary and guiding objective is to grow SOL Per Share (SPS) as fast as possible[10] - As of the letter, SPS is 0.0619, an increase of over 47% from the end of June, driven by a $165 million capital raise in July which increased SPS by 34% month-over-month[11] - The company aims to differentiate itself from simple crypto accumulation models by deeply integrating with the onchain economy and acting as a bridge between DeFi and Traditional Finance (TradFi)[13] - Long-term SPS targets are set at 0.165 by June 2026 and 1.0 SPS by the end of 2028[15] Strategic Initiatives The company is pursuing two key strategic initiatives: building a bridge between onchain DeFi and TradFi, and expanding its SOL accumulation strategy globally through a franchising model Building the Onchain to TradFi Bridge DeFi Dev Corp. deepened its Solana DeFi integration in Q2 through the adoption of dfdvSOL, a liquid staking token exceeding $20 million in market cap, and the launch of DFDVx, its tokenized equity, on Kraken - Adopted dfdvSOL, a liquid staking token (LST) built by Sanctum, which has crossed $20 million in market cap and is integrated across multiple DeFi platforms like Kamino, Drift, and Orca[19] - Launched DFDVx, its tokenized equity, on Kraken, becoming the first US-listed crypto treasury company to trade onchain, enabling 24/7 trading and composability with DeFi infrastructure[20] Taking DFDV Global The company launched the DFDV Treasury Accelerator (DTA), a global franchising model designed to partner with regional operators to replicate DFDV's SOL accumulation strategy, with DFDV taking an equity stake - Launched a global franchising model in July, the DFDV Treasury Accelerator (DTA), to extend its SOL treasury strategy globally[22] - The model involves partnering with regional operators to launch localized public vehicles that mirror DFDV's core strategy, with DFDV providing brand, technology, and operational support[24] - The company is currently in advanced diligence with potential partners in five separate regions for proposed transactions where DFDV would receive a meaningful equity stake with minimal capital commitment[25] Financial & Operational Performance The company reported a significant increase in Q2 2025 revenue to $1.986 million and a net income of $15.432 million, driven by unrealized gains on digital assets, while introducing Annualized Organic Yield (AOY) at 10% for validator operations Q2 2025 Financial Highlights | (In Thousands, Except Per Share Data) | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $1,986 | $441 | 350% | | (Gain) Loss From Changes in Fair Value of Digital Assets | -$21,194 | - | - | | Total Operating Expenses (excluding gain from changes in FV) | $5,990 | $1,293 | 363% | | Net Income (Loss) | $15,432 | -$805 | NM | | EPS (Diluted) | $0.84 | -$0.08 | NM | Staking & Validator Performance (Annualized Organic Yield) The company introduced Annualized Organic Yield (AOY) as a new performance indicator, encompassing revenue from its staked SOL treasury, third-party delegated stake, and onchain activities[30] - The estimated AOY in Q2 2025 was approximately 10%[31] - This yield implies about $63,000 per day in SOL-denominated revenue, based on a 1.3 million SOL balance and a SOL/USD price of $176[31][32] Treasury Strategy & Key Performance Indicators (KPIs) The company tracks its performance through core KPIs, including Solana Per Share (SPS) which grew 47% to 0.0619, a fully diluted multiple to Net Asset Value (mNAV) of 1.4x, and a managed Debt/Equity ratio of 48% Solana Per Share (SPS) Growth - Total SOL holdings reached 1,301,653 as of August 11, 2025[33] SPS Growth | Date | Basic SPS | Fully Diluted SPS | | :--- | :--- | :--- | | June 30, 2025 | 0.0421 | 0.025 | | August 12, 2025 | 0.0619 | 0.0443 | | % change | 47% | 77% | Multiple to Net Asset Value (mNAV) mNAV as of August 11, 2025 | Calculation Method | Adj. NAV/Share | NAV multiple | | :--- | :--- | :--- | | (0) Equity-to-SOL | $10.91 | 1.4x | | (1) Debt-is-Debt | $3.94 | 3.8x | | (2) If-Converted ITM Convertibles | $9.08 | 1.7x | | (3) If-Converted All Convertibles, All Warrants Exercised | $10.45 | 1.4x | - The 'Days to Flip mNAV' (DTF), which measures the time to close the premium gap based on SPS growth, was 37 as of August 12, 2025[36] Leverage Leverage Ratios | Metric | Ratio | | :--- | :--- | | Debt/Equity | 48% | | Debt/Assets | 61% | | Debt/SOL | 61% | Capital Management & Shareholder Communication The company successfully raised $122.5 million in convertible debt and $48 million through its Equity Line of Credit, while enhancing shareholder transparency through media appearances and new investor tools Capital Raises - Closed a $122.5 million convertible debt raise led by Cantor Fitzgerald in July, with an initial conversion price of approximately $23.11 per share[41] - Raised approximately $48 million in net proceeds through its Equity Line of Credit (ELOC), with about $4.95 billion in remaining capacity from the $5 billion facility[42] Marketing & Transparency - Management was featured across institutional and crypto-native media platforms, including CNBC, Nasdaq TradeTalks, and CoinDesk[38][43] - New shareholder tools were launched to enhance transparency, including: * A historical chart of mNAV (multiple to Net Asset Value) * A running history of Solana Per Share (SPS) * An interactive SPS Calculator for scenario analysis[38][43] Guidance and Outlook DeFi Dev Corp. maintains its SPS guidance of 0.165 by June 2026 and 1.000 by December 2028, focusing on aggressive SPS growth, increasing SOL holdings, and building recurring revenue from staking and validator operations in H2 2025 - The company is maintaining its guidance of 0.165 SPS by June 2026 and 1.000 SPS by December 2028[46] - The June 2026 guidance represents 167% growth from the current SPS and assumes average monthly capital raises of $50 million, excluding potential upside from the global franchising model[46] - The focus for the second half of 2025 is to aggressively drive SPS growth and increase the absolute amount of SOL on the balance sheet, while also growing staking and validator revenue[48] Appendix: Key Performance Indicator Definitions This section provides detailed definitions and calculation methodologies for the company's key performance indicators (KPIs), including Annualized Organic Yield (AOY), Average Stake, and the four different views of multiple to Net Asset Value (mNAV) - Annualized Organic Yield (AOY) is defined as (Digital Asset Treasury Revenue / Average Stake) × 4[52] - Average Stake is the arithmetic average of daily SOL staked to the company's validators during a reporting period[55] - mNAV (multiple to Net Asset Value) is defined as Market Capitalization / Net Asset Value, and the company presents it in four different views to account for debt and dilution from convertibles and warrants[56][59] Forward-Looking Statements This section contains standard legal disclaimers, cautioning investors that forward-looking statements about future plans and financial performance are subject to inherent risks and uncertainties, and actual results may differ materially - The report contains forward-looking statements that are based on current beliefs and expectations and are subject to inherent uncertainties, risks, and changes[60] - Key risk factors that could cause actual results to differ include fluctuations in the market price of SOL, stock price volatility, regulatory changes, and the ability to access capital[60]