DeFi Development (DSDV) Investor update summary

January business highlights

• Ended January with 2.2 million SOL on balance sheet, SPS of 0.0743, and DFDVX trading volume over $30 million.

• Expanded on-chain yield and treasury infrastructure through new integrations with HILO, Mooncake, Solstice, Yield Vault, and Jupiter Lend.

• Strengthened governance by adding Hadley Stern to the board and announced a revolving credit facility with DFDV UK.

• Hosted a Reddit AMA covering preferred stock plans, SPS growth, validator strategy, and market outlook.

Market conditions and strategy

• Current market volatility is among the most severe since the FTX collapse, with significant price drops in Bitcoin.

• Despite market turbulence, internal sentiment remains focused on long-term building and resilience.

• Bear markets are seen as opportunities to return to first principles and foster innovation.

• TradFi investors are increasingly entering crypto, potentially absorbing coins from long-term holders.

Capital allocation and buybacks

• Buybacks were conducted in January to grow SOL per share, especially when trading at a discount to NAV.

• Preferred issuance remains a focus, but challenging market conditions have made it difficult to execute at favorable rates.

• ATM offerings are paused due to trading at a discount to NAV, but institutional investors debate the premium/discount metrics.