Solana (SOL) Adopted NASDAQ Listed Company, Stock Price Soars 1579% in One Month

The stock price of a Nasdaq-listed company that declared the incorporation of Solana (SOL) as a strategic asset has soared by over 1,500% in just one month. The company recently changed its name from Jenover to DeFi Development, demonstrating its intention to expand its influence in the virtual asset ecosystem.

According to the industry on the 2nd, DeFi Development (formerly Jenover) closed trading at $82.28 on the 1st (local time), a 10.46% increase from the previous day. On April 2nd, the stock price was around $4.9. This represents a staggering 1,579.18% surge in about a month.



This sharp increase is interpreted as a result of the company's announcement to hold SOL long-term and actively participate in its ecosystem. On April 4th, DeFi Development approved a financial strategy to incorporate SOL as a strategic asset at a board meeting. They also unveiled plans to participate as a validator on the Solana blockchain and secure staking rewards. Validators are key participants who verify transaction validity and generate blocks in a blockchain network. In proof-of-stake (PoS) blockchains like Solana, only participants who deposit a certain amount of assets can become validators and receive rewards based on network contribution.

DeFi Development announced that it raised approximately $24 million for SOL acquisition through a Private Investment in Public Equity (PIPE). Global virtual asset investment firms such as Galaxy Digital, Arlington Capital, and Republic Digital participated in this investment. The company plans to increase its SOL holdings and expand validator operation infrastructure with these funds.

According to the company's website, DeFi Development currently holds 317,273 SOL as of the 2nd. The net asset value of these assets is estimated at approximately $47.7 million. The dollar value of SOL per share is also rapidly increasing. Recent indicators show that the per-share SOL holding value has risen by about 38% from the previous disclosure, a result of additional purchases and staking rewards.

The core management team has also been replaced with individuals who have practical experience in the virtual asset ecosystem. Joseph O'Naughty, former strategy head of cryptocurrency exchange Kraken, was appointed CEO. John Han, who has worked at Binance and Kraken, is the CFO. Parker White, who worked at Kraken for over 6 years, was selected as CIO and COO. The company changed its corporate name from Jenover to DeFi Development on April 17th, with its Nasdaq ticker expected to transition from 'JNVR' to 'DFDV'.

The industry has mixed expectations and concerns about DeFi Development's moves. Chris Jung, founder of Solana-based decentralized exchange Titan, said, "The decision to incorporate SOL as a strategic asset by a traditional asset company is truly groundbreaking" and suggested that more listed companies might follow a similar structure.

However, legal risks remain valid. According to documents submitted to the U.S. Securities and Exchange Commission (SEC), if SOL is deemed a security, the company could be subject to the Investment Company Act. This law applies additional regulations to companies where over 40% of total assets are classified as securities. DeFi Development stated it will continuously monitor SOL asset proportions and may adjust assets if necessary.

SOL's price volatility is also a major risk factor. The company explained that "if SOL's price falls below book value, it could result in impairment losses, which may negatively impact financial statement profitability".

Meanwhile, according to CoinMarketCap at 3 PM that day, SOL was trading at $149.62, up 0.38% from the previous day, ranking 6th in market capitalization among virtual assets.

Reporter Do Ye-ri

yeri.do@sedaily.com