"Solana-based MicroStrategy" DeFi Development holds 1 million SOL, valued at 130 million USD.

DeFi Development Corporation (DFDV), a publicly traded company in Florida, USA, announced that it has purchased nearly 1 million Solana (SOL), totaling close to $130 million, attracting market attention. This move reflects the accelerating spread of the strategy of "encryption assets entering corporate financial reports," with more and more companies emulating the Strategy model and treating digital assets as a core asset allocation.

DFDV heavily buys Solana at a cost price of approximately $133.53 DFDV, based in Boca Raton, Florida, announced in a recent statement that the company currently holds 999,999 SOL tokens. Between July 14 and July 20 alone, the company purchased 141,383 SOL at an average purchase price of $133.53, costing approximately $19 million.

The funds for this cryptocurrency purchase mainly come from the net proceeds of $19.2 million obtained through equity financing. The company issued 740,000 shares of common stock during this period, building a "war chest" for digital asset investment.

Public companies collectively "go on-chain", encryption assets become a new financial strategy DFDV is currently one of more than 150 listed companies worldwide that have adopted the "encryption asset financial reporting" strategy. This strategy was first pioneered by Michael Saylor's Strategy (formerly known as MicroStrategy), which has reshaped corporate financial structures by continuously issuing stocks and bonds to purchase Bitcoin on a large scale.

Currently, companies that emulate this strategy include the game retailer GameStop (GME) and Trump Media (DJT), owned by the Trump family, which previously announced a $2 billion investment in Bitcoin. In addition, BitMine Immersion Technologies (BMNR), chaired by Fundstrat strategist Tom Lee, has also chosen Ethereum (ETH) as its main focus.

Although these strategies have resulted in a surge in the company's stock price far exceeding its market value of held digital assets, they have also raised concerns among some investors and bears in the market, worrying that valuation bubbles and the volatility of encryption assets may impact the company's fundamentals.

SOL has no total supply limit, raising questions about the sustainability of its valuation Unlike Bitcoin, which has a fixed total supply of 21 million coins, Solana currently does not have a maximum supply set, which may raise questions about valuation stability in the eyes of institutional investors.

Nevertheless, the price of DFDV shares has still skyrocketed this year, starting at only $0.67 at the beginning of the year. As of this week, although the share price has dropped by 3%, it has still increased by 34 times.

Conclusion With companies like DeFi Development making significant inroads into Solana, the trend of traditional enterprises transitioning to digital asset allocation is becoming increasingly evident. However, the unlimited supply and valuation uncertainty also make SOL a target with both risks and potential. Investors should follow the transparency of financial reports and asset management strategies to determine whether this wave of "on-chain enterprises" can continue to evolve.