Ken Griffin, the founder and CEO of Citadel, disclosed a 4.5% stake in Defi Development Corp. (DFDV), a digital asset company focused on accumulating Solana.
According to a schedule 13G Filing With the US Securities and Exchange Commission (SEC), Griffin holds just over 1.3 million shares, representing about 4.5% of defi development’s outstanding common stock.
Separately, Citadel Advisors LLC and affiliated entities reported ownership of 800,000 DFDV shares, or approximately 2.7% of the company’s outstanding stock.
The disclosure adds to mounting evidence of Wall Street’s growing involvement in digital assets. A Recent A16Z Crypto report It highlighted accelerating institutional adoption, citing companies such as BlackRock, JPMorgan Chase, Fidelity and Citigroup for their expanding activity in the sector.
Citadel Advisors LLC serves as the investment management arm of Citadel Hedge Fund Group and is a registered investment adviser with the SEC. Citadel manages approximately $65 billion in assets across various funds.
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Competition is eating away at digital Asset Treasury companies
Defi Development Corp. emerged as the second largest largest Solana (Sol) Treasury Company – part of a small but growing group of companies racing to accumulate digital assets.
In early September, the company Scooped up $ 117 million worth of SOL During an eight-day stretch, the lifting of Treasury holdings of more than $ 400 million.
In the past 30 days, Defi Development Corp. added 86,307 Sol, according to Coingecko, bringing its total holding to 2,195,926 Sol. Although the value of those holdings has since dipped below $400 million amid a market-wide slump, the company’s cost basis of about $236 million means it remains profitable.
The only company with a larger Solana Treasury is Forward Industries, which holds about 6.82 million SOL, almost three times more than Defi Development Corp.
The rise of Digital Asset Treasury (DAT) strategies reflects a growing trend of companies seeking to strengthen balance sheets and investor appeal through exposure to high-growth assets. But analysts caution that the strategy carries significant risks.
David Duong, Head of Institutional Research at Coinbase, told Cointelegraph That “regulatory shift, liquidity, and market pressures” could drive consolidation in the digital Treasury sector, with larger players likely to absorb smaller rivals.
Chartered standard analysts warn That many DAT companies may face a Valuation Crunch as their net asset value (MNAV) declines. MNAV measures a company’s market value relative to crypto holdings. Prolonged market weakness may make it more difficult for DATs to raise new capital to expand their fortunes.
Standard Chartered specifically mentioned Defi Development Corp. Among those experiencing compressed valuations as the sector adjusts to new market realities.
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