DeFi Development Corp. Announces Proposed Private Offering of $100 Million of Convertible Notes

Core Viewpoint - DeFi Development Corp. plans to offer $100 million in convertible senior notes due 2030, with an option for an additional $25 million, to qualified institutional buyers, aiming to enhance its treasury strategy focused on accumulating Solana (SOL) [1][2] Group 1: Offering Details - The offering of convertible senior notes is subject to market conditions and will be made under Rule 144A of the Securities Act [1] - The notes will accrue interest semi-annually starting January 1, 2026, and will mature on July 1, 2030, unless converted or repurchased earlier [3] - The initial conversion rate and other terms will be determined during pricing negotiations with initial purchasers [4] Group 2: Use of Proceeds - A portion of the net proceeds will be used to repurchase shares of the Company's common stock, while the remainder will be allocated for general corporate purposes, including acquiring SOL [2] Group 3: Prepaid Forward Transaction - The Company plans to enter a prepaid forward stock purchase transaction with an initial purchaser to facilitate derivative transactions, allowing investors to hedge their investments in the convertible notes [5][6] - This prepaid forward is expected to enable investors to establish short positions that may correspond to their investment hedges [6] Group 4: Market Impact - Activities related to the prepaid forward may influence the market price of the common stock and the convertible notes, potentially affecting conversion prices and the value received by noteholders upon conversion [8][7] Group 5: Company Overview - DeFi Development Corp. has a treasury policy that primarily allocates its reserves to SOL, providing investors with direct exposure to the cryptocurrency while participating in the Solana ecosystem [9] - The Company operates its own validator infrastructure, generating staking rewards and is engaged in decentralized finance (DeFi) opportunities [9]