Janover (now DeFi Development Corp) raises over $1B to invest in Solana

Nasdaq-listed firm, previously a real estate financing platform connecting commercial property lenders and buyers, announced its plans in a Form S-3

DeFi Development Corp, formerly known as Janover, is seeking to raise over $1 billion in capital to invest in Solana, the industry’s sixth-largest cryptocurrency by market capitalization. The Nasdaq-listed firm, previously a real estate financing platform, disclosed its plans in a Form S-3 registration statement filed with the SEC on April 25.

The company will use the funds for general corporate purposes, including the acquisition of Solana (SOL) tokens.

According to the filing, the company may use proceeds from the offering to purchase more Solana, adding that “any remaining net proceeds may be used for general corporate purposes, which may include, but are not limited to, working capital, operating expenses, and the acquisition of assets or businesses of any type or nature, in accordance with our treasury policies.”

However, the company also warned that fluctuations in Solana’s price could lead to it converting the tokens into cash at a value “substantially below” the net proceeds raised.

Janover was a real estate financing company connecting lenders and buyers of commercial properties before a team of former Kraken exchange executives bought 728,632 shares of its common stock on April 7.

Joseph Onorati, former chief strategy officer at Kraken, has since been appointed as chairman and CEO. The move comes shortly after the leadership of DeFi Development Corp adopted a Solana treasury reserve, “by applying a proven public-market treasury model to an asset that’s earlier in its lifecycle, structurally reflexive, and vastly underexposed as compared to Bitcoins.”

The firm’s new Solana investment treasury has drawn comparisons to Michael Saylor’s Strategy, which has amassed over 538,200 Bitcoin (BTC) as of April 20 — the world’s largest corporate Bitcoin holder.

The firm’s board of directors approved the company’s Solana-focused treasury policy on April 4, authorizing long-term accumulation and the launch of Solana validators to enable the staking of its treasury asset.

The firm’s chief investment officer, Parker White, who previously served as an engineering director at Kraken exchange, already runs a Solana validator with $75 million in delegated stake.

The firm remains concerned by the potential effects of opaque crypto regulations, according to the filing:

"The regulatory landscape for digital assets is still developing, and any new laws, regulations, administrative rules, or industry standards applicable to digital assets may adversely affect the price of Solana and, in turn, impact the market price of our common stock."

The firm cites unclear regulations around digital assets, which may "adversely affect the price of Solana" and, in turn, impact "the price of our common stock."

The firm noted that Solana’s potential "reclassifying" as a security remains a particular concern, which may lead to the firm being classified as an investment company under the Investment Company Act of 1940.

The firm's share price has been benefitting from its Solana acquisitions. Its shares rose by over 12% when DeFi Development Corp added $11.5 million worth of Solana tokens to its treasury on April 22.

"The decision by commercial property platform Janover to add SOL to its treasury is truly groundbreaking," said Chris Chung, founder of Solana-based swap platform Titan.

"I’m confident we will see many other businesses follow suit before long as crypto becomes increasingly adopted by traditional finance."