DeFi Development Corp. expands Solana treasury accelerator

Solana-focused DeFi Development Corp. has announced the expansion of its Treasury Accelerator program.

Institutional interest in altcoins, including Solana, is rising. On Thursday, September 18, DeFi Development Corp. announced an expansion of its Solana treasury strategy. Notably, the firm will invest in other digital asset treasury products and use the profits to buy more SOL.

DeFi Development Corp. will assign between $5 million and $75 million to each DAT through its balance sheet. This will be done through equity placements, convertible structures, or debt financings. The firm will provide funding either in cash or in kind with Solana tokens.

“We’ve built the Treasury Accelerator to catalyze DATs globally,” said Joseph Onorati, Chief Executive Officer of DeFi Development Corp. “We intend to back the most promising DATs worldwide, and use the returns to grow SOL per share for our shareholders.”

Digital asset treasuries, in this context, refer to any crypto-native fund that manages its own investment and is fully on-chain.

DeFi Development Corp. to create a SOL treasury flywheel

If a given digital treasury fund appreciates, DeFi Development Corp. will convert a portion of it to cash and use the proceeds to buy more Solana (SOL). The company hopes this strategy will enable it to promote SOL treasury strategies globally and accumulate its own Solana holdings faster.

Using this strategy, the company aims to create a cycle where each successful treasury investment helps increase its Solana holdings. Once the firm reinvests profits in Solana, its SOL-per-share metric rises, creating more value for shareholders. The firm is then free to raise more capital for its DAT investments.