DEFI Development Corp (formerly Janover) aims to remove more than $ 1 billion in capital to invest in Solana, the sixth cryptocurrency of industry by market capitalization.
The company listed at NASDAQ, previously a real estate financing platform connecting lenders and buyers of commercial properties, announced its plans in a S-3 registration declaration form filed with the Securities and Exchange Commission (SEC) of the United States.
The file stipulates that funds will be used for general business purposes, including the acquisitions of Solana token (soil).
Depending on the file, the company can use the product product to buy more Solana, noting:
“Solana does not pay interest, but rewards of intention can be won over Solana. The possibility of generating a return on investment from the net product of this offer will depend on the assessment of Solana’s value following our Solana purchases with the net product of this offer. ”
The company also warned that fluctuations in the solana price could lead to the conversion of tokens into cash to a value “significantly lower” to the net product increased.
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Janover was a real estate financing company connecting lenders and buyers of commercial properties before a team of former managers of Kraken Exchange buys 728,632 ordinary shares on April 7. Joseph Onorati, former Kraken strategy director, has since been appointed president and CEO.
The announcement comes shortly after the leadership of Defi Development Corp adopted a Solana cash reserve, “by applying a model of public market experienced to an asset which is earlier in its life cycle, structurally reflexive and largely not exposed compared to Bitcoins.”
The new Solana’s investment treasury of the company of the company made comparisons with the strategy of Michael Saylor, which accumulated more than 538,200 Bitcoin (BTC) on April 20 – the largest business Bitcoin holder in the world.
The company’s board of directors approved the Treasury policy focused on the Société sur Solana on April 4, authorizing the long -term accumulation and the launch of Solana Validators to allow the implementation of its assets of the Treasury.
Parker White, the company’s investment director, who previously was director of engineering at Kraken Exchange, already heads a Solana validator with $ 75 million in delegated participation.
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Regulatory concerns remain for Solana’s investment
While the implementation of the Treasury focused on Solana marks an important step for the adoption of Altcoin, the company remains concerned by the potential effects of the opaque regulations of cryptography, according to the file:
“We can be subject to regulatory developments linked to cryptographic assets and the markets of cryptographic assets, which could harm our business, our financial situation and our operating results.”
The company cites unclear regulations concerning digital assets, which can “negatively affect the Solana price” and, in turn, an impact “the market price of our ordinary actions”.
The company noted that Solana’s potential “reclassifying” as a guarantee remains a particular concern, which could lead the company classified as an investment company under the 1940 law on investment companies.
However, the company’s share price benefited from its Solana acquisitions. Its shares increased by more than 12% when Defi Development Corp added $ 11.5 million in Solana tokens to its treasury on April 22, Cintelegraph reported.
“The decision of the Janover commercial property platform to add soil to its treasure is really revolutionary,” said Cointelegraph Chris Chung, founder of the Swap platform, based in Solana. “I am convinced that we will see many other companies fitting out for a long time that the crypto becomes more and more adopted by traditional finance.”
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