Executives at DeFi Development (NASDAQ:DFDV) used a monthly business recap and question-and-answer session to review February activity, discuss a reduction in near-term guidance tied to market conditions, and outline how a recent investment in a new stablecoin protocol could support future fundraising efforts.
February recap: research, events, and community outreach
Chief Marketing Officer Pete Humiston said the company published a research report introducing a valuation framework for Solana’s SOL token that treats SOL as “scarce digital real estate” tied to an expanding on-chain economy. Under the report’s base-case assumptions, Humiston said the framework suggests a long-term valuation of “roughly $10,000 per SOL.” The company also released a downloadable model intended to let readers adjust assumptions.
Additional February efforts cited by Humiston included institutional investor education through published content and the company’s “Just Chatting” series, plus broader community engagement across X, YouTube, and other platforms.
Near-term guidance reduced amid what executives called a bear market
A key topic during the session was the company’s previously announced downward revision to near-term guidance, which was reduced to 0.085 SOL per share from 0.165 SOL per share, while long-term guidance was maintained.
Chief Investment Officer and Chief Operating Officer Parker White attributed the change to a “reflection of the bear market.” White said the company initially issued guidance during what he characterized as peak bull-market conditions, with multiple positive catalysts and improving liquidity. He then described a sharp move in crypto markets from October through early February that he said was “completely uncorrelated” with broader risk assets.
White said the market environment compressed the company’s net asset value and limited the ability to use its at-the-market (ATM) program. He added that investor sentiment “dried up,” making preferred equity financing more difficult and making broader capital raising “almost impossible,” while asserting that MicroStrategy had been among the few entities able to raise capital at meaningful scale.
While White framed the near-term guidance change as a timing issue, he said the company’s long-term target remains intact and suggested the timeline may be pushed out by months or longer, depending on when market conditions improve. Humiston reiterated that the company’s “North Star” remains “1 SPS long term.”
Management compensation questions: retention and alignment
Humiston and White also addressed questions about management bonuses and stock grants. White said the company issued an options and restricted stock unit (RSU) package to the entire team earlier in the year as part of an annual compensation review. He said the proposal was submitted to a compensation committee “made up of independent directors.”
White said the grants were intended to retain talent amid competitive pressures, stating that executives had received offers from other digital asset treasury (DAT) organizations and crypto companies. He argued that losing key personnel would require the company to “pay up” to replace them regardless of the stock’s performance.
White also emphasized what he described as management’s alignment with shareholders, stating that he and other executives are the largest single shareholders collectively, owning “a little north of 20%.” He said management has not sold shares and has acquired shares since the initial acquisition of the company, adding that the awards vest over four years and that issuance does not imply immediate selling.
Solana valuation framework: treating SOL as “digital real estate”
In discussing the Solana report, White said traditional approaches that value Solana like a software company—using revenue or earnings multiples—miss key aspects of what permissionless networks can become. He described the report’s framing of Solana as a “city state” or “global digital finance hub,” and SOL as the equivalent of land ownership.
White argued that in a future scenario where meaningful portions of global finance move on-chain, large institutions would want to own SOL not only to transact but also to maintain influence and “stake a claim” in the system for governance and economic participation. He cited a hypothetical example of a large asset manager putting significant assets on-chain and wanting to avoid a situation where economic value accrues primarily to other SOL holders.
ApeX Protocol investment: stablecoin yield and a potential capital catalyst
Humiston said the company announced an investment into ApeX, which he described as the first “dividend-backed stablecoin protocol” designed to offer enhanced yield by sourcing yield from preferred equity issuance by digital asset treasuries, referencing MicroStrategy’s “Stretch” preferred equity as an example. He said the company planned to host a separate call with the ApeX team to discuss the investment further.
White described ApeX as a decentralized stablecoin project with a governance token and DAO structure, organized as an ownerless foundation and an offshore entity. He said the goal was for ApeX not to be owned by any single company, including any single DAT, to avoid limiting its potential.
White said the project raised initial funding from angels and from the team, and that DeFi Development made what he called a “small check relative to the balance sheet,” giving the company upside economics while aiming for broader growth of the protocol. He contrasted the concept with stablecoin issuers he said have less transparent balance sheets, arguing that backing stablecoins with publicly disclosed preferred instruments could allow more frequent attestations and audits.
White also outlined how ApeX could benefit the company beyond the investment itself, describing it as a potential “source of capital” that could support preferred equity issuance. He said the company has received feedback that it is “too small” or “subscale” to attract a lead investor for preferred issuance and argued that a structure like ApeX could help create anchor demand. White said the company has already filed a preferred instrument with the ticker symbol “CHAD” and called preferred issuance a major potential unlock for the business. He added that the company wants to resume buying SOL and pursue its “1 SOL per share target.”
Both speakers emphasized that the company intends to remain focused on DeFi Development, with White saying a separate team works on ApeX and that the long-term goal is to hand control to the community as it matures.
In closing comments, White and Humiston said they view current conditions as a bear market but expressed internal optimism, with White suggesting the speed of the decline could lead to a faster rebound than prior cycles. White said the business is built to weather “reasonable environments,” while also acknowledging that a prolonged collapse in SOL would create challenges. Both executives thanked shareholders and community members for continued support during drawdowns and encouraged ongoing feedback and questions.
About DeFi Development (NASDAQ:DFDV)
We are a B2B fintech marketplace connecting commercial property borrowers and lenders with a human touch. We seek to revolutionize the commercial real estate lending market by making it hyper-efficient, transparent, and accessible to all rather than the few. Through our online platform, we provide technology that connects commercial mortgage borrowers looking for capital to refinance, build, or purchase commercial property, including, but not limited to, apartment buildings, to commercial property lenders.
