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DeFi Development Corp. shuts Solana SOL accelerator after $27M loss

The firm reported a $27 million second-quarter loss, reversed from a year-earlier gain, and expects operating expense declines to start again in the third quarter.

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DeFi Development Corp., a treasury holder of Solana's SOL token, reported a $27 million second-quarter loss and is retrenching after the results forced cost cuts. In an Aug. 12 shareholder letter, the company said its net loss on digital assets was $21.519 million, flipping from a $21.194 million gain a year earlier.

The company said it is closing its Treasury Accelerator to new deals and lowering costs, while also repurchasing convertible debt below face value. It reported that operating expenses plus cost of goods sold, excluding fair-value changes, fell 22.6% year over year to $4.635 million from $5.990 million, and it expects operating expenses to decline again beginning in the third quarter, without quantifying the savings.

DeFi Development Corp. said it repurchased about $3.5 million of July 2030 convertible-note principal for $2.3 million in cash, a roughly 35% discount. It estimated that cumulative repurchases had reached about $7.9 million of principal for $5.0 million in cash, with estimated annual interest savings above $400,000.

The company also said it issued approximately 478,000 shares via an at-the-market facility for $1.4 million to fund operating costs starting in late June. As of Aug. 12, it reported holding 2,311,523 SOL and SOL equivalents and said its fully converted SOL per share metric was 0.066, up about 24% from 0.053 a year earlier, while leverage remained substantial.

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