DeFi Startup Buys Solana Validator for $3.5M, Teases Big Plan

DeFi Development Corporation, a former real estate software company, has entered the crypto world with a major acquisition: a $3.5 million Solana validator business. 

This deal is part of the company’s plan to grow its presence in the Solana ecosystem and earn more from its SOL holdings. This announcement comes as the Solana Foundation successfully patched a critical bug in its system that could have led to a massive exploit.

DeFi Development Changes Focus to Crypto

DeFi Development Corp used to provide software and data services to the real estate industry. Earlier this year, the company changed its focus to Solana, a popular blockchain. It now aims to grow its SOL holdings and support the Solana network.

On April 22, the company also changed its name from “Janover.” This happened after former executives from Kraken, a crypto exchange, took control of the company. The new leadership would help guide the company toward its new path in blockchain and decentralized finance (DeFi).

A $3.5M Deal with Big Potential

The newly acquired Solana validator business has a major role in the network. It manages about 500,000 delegated SOL, worth around $75.5 million at current prices. 

DeFi Dev Corp is buying the business using $3 million in restricted company stock and $500,000 in cash. Restricted company stock cannot be sold right away and is usually held for a set period. 

Now that the company owns its validator, it can stake its own SOL tokens and earn rewards directly from the network. It will also wholly control all future staking rewards the validator receives.

As of May 1, the company holds 317,273 SOL, worth about $46.2 million. With this validator business, the company can stake those tokens directly and earn more rewards over time.

In a recent statement, Parker White, the company’s Chief Investment Officer and Chief Operating Officer, said this deal is part of a bigger strategy. He added that operating validators will help the company become a core part of Solana. 

DeFi Dev Corp Takes A Different Approach  

The company is now focused on building a strong position in the Solana ecosystem. This strategy is similar to what other big companies are doing with crypto. Other firms like Michael Saylor’s firm, Strategy buys Bitcoin (BTC) and hold it for a long time. 

However, DeFi Development Corp is using a different approach with Solana. The company is not only holding the token but also getting involved in running part of the network.

Solana is trading at around $145, with about $2.3 billion daily trading volume. This shows that the network is active and growing. With this purchase, DeFi Development Corp is positioning itself for long-term success in the crypto space.