DeFi Development Corp. (NASDAQ: DFDV)

DeFi Development Corp. operates as an AI-powered online platform that connects the commercial real estate industry by providing data and software subscriptions as well as value-add services to multifamily and commercial property professionals. The company facilitates connections between commercial mortgage and small business borrowers seeking debt for property refinancing, construction, or acquisition, and commercial property lenders such as traditional banks, credit unions, real estate investment trusts (REITs), debt funds, and other financial institutions. Additionally, DeFi Development Corp. generates revenue through its digital asset treasury strategy by staking its SOL holdings with third-party platforms and operating validator nodes on the Solana network.

The company's revenue streams are diverse, stemming from platform fees, subscription revenue, and digital asset treasury activities. Platform fees include referral and advisory fees generated from multifamily and commercial real estate and small business debt transactions. Subscription revenue comes from data, transparency, and tools offered as annual software subscriptions to help stakeholders navigate complex components of the multifamily and commercial property lifecycles. The digital asset treasury strategy involves purchasing, holding, and compounding digital asset holdings through staking and operating owned validators, generating revenue through delegating digital asset holdings with third-party and owned validators and operating Solana validators.

• Digital Asset Treasury: This segment executes and manages the company's treasury policy, focusing on purchasing, holding, and compounding digital asset holdings through staking and operating owned validators. The segment generates revenue through delegating SOL holdings with third-party validators and operating Solana validators. The company's digital asset holdings as of September 30, 2025, totaled $301.5 million, with $244.3 million in SOL and the remaining in SOL liquid staking tokens. The segment aims to accumulate SOL for long-term holding to diversify treasury holdings and increase shareholder value. The company has purchased approximately 2.0 million SOL for a total of $327.0 million from April 5, 2025, through September 30, 2025, using proceeds primarily from financing activities that consisted of equity issuances and debt financing. The strategy involves entering into additional capital raises, with a target of raising approximately $50.0 million a month on average until June 2026. The company's validators participate in securing the Solana network through creating and validating transactions on the blockchain, known as the proof-of-stake consensus protocol. In exchange for providing these services, the company receives revenue in the form of Solana, and the amount varies based on several factors including an annual inflationary rate of approximately 4.3%, validator performance, and the amount of SOL that is delegated on the validator as compared to the Solana network. The company's primary trading and custodial counterparties include Kraken, BitGo, and Galaxy, which safeguard the company's digital asset holdings and/or execute trading on its behalf. The company uses Kraken hot wallets to execute approximately 95% of its Solana spot trading transactions. Kraken has entities registered as money services businesses with the Financial Crimes Enforcement Network (FinCEN), is licensed as a money transmitter in various states across the U.S., and chartered as a Special Purpose Depository Institution by the Wyoming Division of Banking. The company has a custody agreement with BitGo Trust Company, Inc. (BitGo), under which BitGo provided to the company customary qualified custody services. BitGo Trust is a South Dakota trust company licensed to act as custodian, safeguarding approximately 20%-50%, depending on trading and staking activity, of the company's SOL holdings in segregated cold wallets. BitGo wallets are supported by a $250 million insurance policy issued by a syndicate of insurers in the Lloyd's of London and European Marketplace. The company uses Galaxy's institutional product, GalaxyOne Institutional (GalaxyOne), which, depending on trading and staking activity, holds approximately 20%-40% of the company's SOL holdings in a hot wallet. GalaxyOne provides a gateway for institutions to trade, custody, stake, and manage digital assets. It is operated under GalaxyOne Prime LLC (GalaxyOne Prime), a FinCEN-registered money service business. GalaxyOne Prime partnered with Paxos Trust Company, LLC to custody digital assets on behalf of its clients. Paxos is a New York State-chartered trust company, overseen by the New York Department of Financial Services. The company's digital asset treasury strategy segment operates in a highly competitive and ever-changing cryptoeconomy and faces significant competition, ranging from larger digital asset treasury companies, digital asset trading platforms, and validator peers. The cryptoeconomy is continuously expanding, and the company expects to face competition from new entrants in the future as the adoption of digital assets continues to grow.

• Real Estate Platform: This segment provides a technology platform that connects commercial mortgage and small business borrowers looking for debt to refinance, build, or buy commercial property including apartment buildings to commercial property lenders. These property lenders include traditional banks, credit unions, REITs, debt funds, and other financial institutions looking to deploy capital into commercial mortgages. The segment has developed an AI-enabled, business-to-business fintech platform that matches borrowers to their best loan option(s) or to the company's internal capital markets advisors that guide the borrower through the process and connect them with the right loan product and lender. The segment currently serves hundreds of thousands of web users annually, including multifamily and commercial property owners and developers applying for billions of dollars of debt financing per year, professional service providers, and thousands of multifamily and commercial property lenders including more than 10% of the banks in the United States, credit unions, REITs, debt funds, Fannie Mae and Freddie Mac multifamily lenders, FHA multifamily lenders, commercial mortgage-backed securities (CMBS) lenders, Small Business Administration (SBA) lenders, and more. The segment derives its revenue primarily from platform fees and subscription revenue. Platform fees include referral and advisory fees generated from multifamily and commercial real estate and small business debt transactions. Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied and the promised services have been transferred to the customer. The segment's data and software offerings are generally offered on a subscription basis as software as a service (SaaS). The segment provides data, transparency, and tools, generally as annual software subscriptions, to help stakeholders navigate the most complex components of the multifamily and commercial property lifecycles – debt (Janover Pro, Janover Capital Markets), insurance (Janover Insurance), equity (Janover Connect, Janover Engage), and technology (Janover AI). The segment earns platform revenue from fees charged to its customers that utilize its technology platform which matches lenders and borrowers. These fees include a share of the revenue per transaction by the lender, typically 1% of the loan amount, and in some cases a fixed negotiated fee from the borrower. The segment also derives revenue from its software as a service (SaaS) offerings which provide data, transparency and other tools to help customers navigate the complex components of the multifamily and commercial property lifecycles and includes debt, equity, insurance and technology. Contracts with customers utilizing the segment's SaaS offerings are subscription based and last between one to three years. The segment acts as the principal in these contracts and recognizes revenue ratably over the contract term on a gross basis. The amount of revenue earned is equal to the annual rate per the contract or when the services are performed throughout the contractual period. The commercial real estate market tends to be seasonal in nature, with the first and fourth fiscal quarters being more active than the second and third fiscal quarters. Such fluctuations have to be considered by investors since quarterly results may not be indicative of the company's fiscal year results.

DeFi Development Corp. operates in a competitive landscape within the commercial real estate technology and digital asset sectors. The company faces competition from other fintech platforms connecting borrowers and lenders, as well as from traditional financial institutions offering similar services. In the digital asset space, the company competes with other entities managing treasury strategies and operating validator nodes on the Solana network. The company's competitive advantages include its AI-enabled platform that efficiently matches borrowers with lenders, its comprehensive suite of data and software tools, and its strategic focus on the Solana network for digital asset management.

The company's customer base is diverse, including multifamily and commercial property owners and developers, professional service providers, and a wide range of lenders such as banks, credit unions, REITs, debt funds, and government-sponsored entities. The platform serves hundreds of thousands of web users annually, facilitating billions of dollars in debt financing. The company's services are utilized by more than 10% of the banks in the United States, highlighting its significant presence in the commercial real estate financing market.