DeFi Development Corp. (DFDV) Secures $5 Billion Equity Line of Credit from RK Capital Management

According to a Thursday press release, the company has secured a $5 billion equity line of credit with RK Capital Management.

DeFi Development Corp. (NASDAQ:DFDV) secured a $5 billion equity line of credit with RK Capital Management, enabling the firm to sell shares gradually.

What Happened: According to a Thursday press release, the agreement allows DeFi Dev to sell shares at its discretion, as long as it meets specific conditions.

This includes filing a resale registration statement with the U.S. Securities and Exchange Commission, which the company intends to do shortly.

"We now have the flexibility and structure we need to scale. This is a clean, strategic path to continue growing SOL per share and compounding validator yield," said Joseph Onorati, Chief Executive Officer.

DFDV shares, which had fallen in early trading, rebounded and rose by 12% during the Thursday session.

Why It Matters: The company, formerly known as real estate technology platform Janover, is part of a growing trend of publicly-traded firms accumulating cryptocurrencies through fundraisings.

DeFi Dev is focusing on the Solana blockchain, collecting the network’s native token and operating validators. The company's latest move follows the withdrawal of a previous filing for a $1 billion share sale, which it plans to refile.

As of May 16, the firm's holdings included over 609,000 SOL tokens, currently valued at about $96 million.

The latest move also comes amid a broader downturn in the crypto markets, with several lenders facing difficulties and leading to widespread layoffs in the industry.

See More: Benzinga's coverage of cryptocurrency startups

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