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Solana holds steady as DeFi Development Corp plans to acquire SOL validator

  • DeFi Development Corp announced its plan to purchase a Solana validator business for $3.5 million.
  • The validator holds an average delegated stake of 500,000 SOL valued at $75.5 million. 
  • SOL held steady above $145 following the announcement. 

Solana (SOL) traded above $145 on Monday after DeFi Development Corporation revealed progress in its plan to acquire a Solana validator business for $3.5 million. The company claims that this move will allow it to self-stake all its Solana holdings and claim the staking rewards as part of its revenue.

DeFi Development Corp set to begin staking SOL following validator purchase

DeFi Development Corporation is finalizing plans to acquire a Solana validator business for $3.5 million, according to a press release on Monday. The validator holds an average delegated stake of 500,000 SOL, valued at $75.5 million. Once the payment is finalized, the company intends to rebrand the validator under its name.

Alongside the rebrand, all staking rewards will be funneled directly into DeFi Development Corp’s revenue, and the firm will gain the ability to self-stake its Solana holdings. DeFi Development Corp claims that the purchase will help boost its treasury strategy while expanding its role in the Solana ecosystem.

“Owning and operating validators with significant delegated stake puts us at the core of Solana - while furthering our mission of effectively accumulating SOL to deliver superior risk-adjusted returns relative to holding SOL directly,” said Parker White, CIO and COO of DeFi Development Corp.

DeFi Development Corp currently holds 317,273 SOL valued at approximately $47.9 million. The company began acquiring Solana early in April following a change in its leadership, which led to a shift in its treasury strategy to focus more on SOL holdings.

The company has executed back-to-back Solana purchases, setting a precedent for other firms looking to add SOL to their corporate treasuries.

SOL/USDT daily chart

Despite recent declines among major cryptocurrencies, SOL held steady at $146 following the announcement. The altcoin is testing the $147 resistance after recording a rejection near the 100-day Simple Moving Average.

The Relative Strength Index (RSI) is above its neutral level while the Stochastic Oscillator (Stoch) declined below its midline, indicating weakening bullish momentum and a potential price decline.

Author

Michael Ebiekutan

With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addition to

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