This post was originally published on this site.
Executives at DeFi Development NASDAQ: DFDV used the company’s monthly business recap and AMA to outline January operational updates, discuss market volatility, and provide context around capital allocation decisions, buybacks, and the firm’s longer-term strategy to expand beyond what they described as a “DAT” model.
January operating highlights and on-chain activity
Pete Humiston, the company’s chief marketing officer, said DeFi Development ended January with approximately 2.2 million SOL on its balance sheet and reported an SPS of 0.0743. He added that the firm’s “DFDV SOL supply” was north of 512,000, and that DFDVX—which he described as tokenized equity—generated more than $30 million in trading volume during the month.
On partnerships and infrastructure, Humiston said the company expanded its on-chain yield and treasury infrastructure through several new integrations, naming HILO, Mooncake, Solstice, Yield Vault, and Jupiter Lend.
Humiston also highlighted content and outreach efforts, including podcast appearances, attendance at the Needham conference, new installments of the “On-Chain Advantage” series, and the launch of a “Just Chattin’” series on YouTube. He also pointed to governance and organizational updates, including the addition of Hadley Stern—previously chief commercial officer at Marinade Finance—to the board.
Management commentary on market conditions
Chief investment officer and chief operating officer Parker described the market backdrop as unusually volatile, noting that Bitcoin was approaching what could be its largest single-day down move since the FTX collapse if it closed in “double digits” for the day. Both speakers emphasized that, despite the market environment, operations remained “business as usual” internally.
Parker said bear markets can be a constructive period for building, describing what he called the “trough of disillusionment” as a time when speculative behavior subsides and teams can focus on “first principles.” He argued that major companies and projects often begin during bear markets, citing examples including Solana’s early development and the formation of major Solana-based lending and DeFi platforms during prior cycles.
Strategy: from “DAT” to building in DeFi
Parker reiterated a view he said he had shared publicly: that 2026 would be a period in which the company moves from being a “DAT” to a “DeFi Development Corporation.” He said the company’s longer-term vision is not simply to hold crypto assets passively, but to “help create the wave,” describing possible paths such as deploying capital into early projects, supporting hackathons and hacker houses, and building products directly.
He said the company has “a bunch of other things” it can do, but did not provide immediate details, stating that management would be forthcoming as developments are launched.
Capital allocation: SOL accumulation, preferred issuance, ATM, and buybacks
In response to questions about capital allocation—covering SOL purchases, preferred issuance, at-the-market (ATM) issuance, and buybacks—Parker said accumulating SOL is easiest when the company has “spare capital to deploy,” but noted that capital availability can be cyclical and often tied to market conditions. He added that the company does not want to take on margin debt due to the risk of further price declines triggering forced actions.
On preferred issuance, Parker said the company continued to work on structuring a preferred offering but described market conditions as “pretty soft.” He cited recent trading in other preferred instruments, naming STRC as being down about 5% off its peg and SATA as down about 15% off its peg, and said those moves can influence investor expectations and potential pricing for smaller issuers. He framed the internal debate as whether it would make sense to raise preferred capital if the cost of capital climbed to levels such as 25% to 30%.
On the ATM program, Parker said it generally does not make sense to issue stock when the company is trading at a discount to net asset value (NAV) under the metrics management prioritizes. He noted, however, that some institutional investors have encouraged issuing based on alternative calculations, including an “EV to NAV” or “debt-to-NAV” approach, and said that under a MicroStrategy-style preferred measure the company would be trading at a 42% premium to NAV. Parker said management instead focuses on equity-to-SOL and fully diluted NAV measures, which he said were at discounts.
Regarding buybacks, Parker said the company has been public that it will not “widely announce” buybacks, describing repurchases at a discount to assets as a “sustainable source of SPS growth.” He said buybacks had occurred and that they are reflected in filings, while declining to provide timing for additional repurchases.
Board and U.K. vehicle update; views on “DAT” risk and leverage
Parker said Stern’s addition to the board brings institutional experience, noting Stern’s background at Fidelity and involvement in Marinade’s efforts to broaden institutional adoption. Parker added that Stern also joined the board of DFDV UK.
On the U.K. initiative, Parker said the company is working through what he described as a more approval-oriented regulatory environment relative to the U.S., and that the process takes time. He said the intent is to have the U.K. vehicle “primed and ready” for a market turnaround, arguing that access to crypto can be more difficult in the U.K. than in the U.S. and that a London Stock Exchange-listed vehicle could appeal to investors in Britain, Europe, and other regions.
Addressing what he characterized as market “FUD” about DATs being “ticking time bombs,” Parker argued that most DATs are not heavily levered and that leverage, when present, is often structured as unsecured debt rather than margin debt—meaning there is no margin call mechanism tied to asset prices. He referenced the company’s July convertible bond financing of roughly $123 million at a 5.5% interest rate and a five-year maturity, explaining that the key obligation is servicing interest payments rather than meeting collateral requirements.
In closing remarks, Parker acknowledged that recent price moves have been painful for shareholders but said management is “not going anywhere” and remains focused on building for the long term.
About DeFi Development NASDAQ: DFDV
We are a B2B fintech marketplace connecting commercial property borrowers and lenders with a human touch. We seek to revolutionize the commercial real estate lending market by making it hyper-efficient, transparent, and accessible to all rather than the few. Through our online platform, we provide technology that connects commercial mortgage borrowers looking for capital to refinance, build, or purchase commercial property, including, but not limited to, apartment buildings, to commercial property lenders.
Featured Stories
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Before you consider DeFi Development, you’ll want to hear this.
MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and DeFi Development wasn’t on the list.
While DeFi Development currently has a Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
Thinking about investing in Meta, Roblox, or Unity? Click the link to learn what streetwise investors need to know about the metaverse and public markets before making an investment.