DeFi Technologies, a cryptocurrency investing platform, has created a new company called SolFi designed to be a “Microstrategy for Solana” (SOL), according to a Nov. 12 announcement.
SolFi is a spin-off of DeFi Technologies focused entirely on “providing investors with direct exposure to the Solana blockchain ecosystem through proprietary trading, validator node operations, and ecosystem investments,” DeFi Technologies said.
SolFi will compete with existing SOL staking platforms and aims to differentiate itself by earning higher yields on staked SOL than peers, DeFi Technologies said.
“By staking Solana with DeFi Technologies' validator and proprietary Maximum Extractable Value (MEV) engine…SolFi Technologies aims to generate consistent cash flow at higher yields than third-party staking providers, which can then be reinvested or distributed to shareholders as dividends,” according to SolFi.
Microstrategy aims to buy $42 billion in BTC. Source: Microstrategy
Related: MicroStrategy’s $42B Bitcoin bet is bullish for shareholders — Analyst
“The success of Microstrategy has elevated exposure to the #1 digital asset in Bitcoin, and we look forward to focusing SolFi's digital asset strategy towards Solana from the ground-up,” DeFi Technology’s CEO, Olivier Roussy Newton, said in a statement.
“Like Microstrategy, SolFi will generate cash flow from an operating company, and tap capital markets for creative financing structures that allows SolFi to quickly grow its treasury and accelerate its staking operations.”
Shares of Microstrategy are up more than 2000% since 2020 after the company, originally a software provider, went all in on a BTC buying strategy.
Its stock, MSTR trades at $356 per share as of Nov. 12, versus less than $15 per share in 2020.
During its Aug. 1 earnings call, MicroStrategy doubled down on BTC buying by committing to a unique performance metric: Bitcoin yield.
Bitcoin yield measures the ratio of BTC holdings to outstanding shares and effectively sets BTC-per-share as a lodestar for corporate performance.
On Oct. 30, Microstrategy tipped plans to buy up $42 billion of BTC over the next three years.
Solana total value locked in USD. Source: DefiLlama
Investors are especially bullish on Solana, with 30% predicting a peak of more than $600 before the end of the cycle, MV Global, a Web3 investing firm, told Cointelegraph.
“Solana is a consensus long among almost every allocator we spoke to,” noted Tom Dunleavy, a managing partner at MV Global.
On July 9, DeFi Technologies agreed to buy trading desk Stillman Digital in an all-stock deal that analysts say will transform the Canadian crypto platform into “a smaller version of Galaxy Digital.”
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