Solana

Newton

Galaxy

DeFi

Challenge

Crypto investing platform DeFi Technologies launched a new company as a MicroStrategy for Solana (<a href="https://yellow.com/asset/sol">SOL</a>). The new company SolFi <a href="https://cointelegraph.com/news/de-fi-technologies-spins-out-solana-investing-platform">launched</a> on November 12 will help crypto investors gain SOL trading exposure. 
A spin-off of DeFi Technologies, SolFi’s primary focus is to provide crypto investors direct exposure to the Solana blockchain by means of proprietary trading, ecosystem investments and validator node operations. 
DeFi Technologies bought the trading desk Stillman Digital on July 9 in an all-stock deal, a move that analysts said transformed the Canadian crypto platform into a “smaller version” of Galaxy Digital. 
The parent company revealed how SolFi aims to differentiate itself from the Solana staking platforms by offering higher yields on staked SOL than peers. The new company will be directly in competition with Solana staking platforms. 
The press release from the company 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”. 
Meanwhile, the CEO of DeFi Technologies, Olivier Roussy Newton said that the success of MicroStrategy has increased traders' exposure to the world’s number one cryptocurrency Bitcoin and hence they are focusing on SolFi’s digital asset strategy towards SOL from the ground up. 
Newton underlined that SolFi will generate cash flow from an operating company like MicroStrategy. It will tap in capital markets for creative financing structures which will allow the quick grow of its staking operations and treasury. 
MicroStrategy shares jumped 2000% since 2020 when it developed a BTC buying strategy from being a software provider. This led to a boom in its stock MSTR which traded at $356 on November 2 after some spike due to US election results. In 2020, MSTR was valued at less than $15. 
In its August earnings call, MicroStrategy announced it has doubled down BTC buying as it has committed to a unique performance metric called Bitcoin yield which measures BTC holdings and outstanding shares ratio. This has effectively set BTC-per-share as a lodestar to understand corporate performance. 
Earlier on October 30, MicroStrategy revealed it aims to purchase $42 billion worth of Bitcoin in a span of 3 years. 
Meanwhile, web4 investing firm MV Global has revealed that crypto investors are harbouring bullish sentiments for Solana as most of them see a 30% price gain, a surge of over $600 before this cycle ends. 
The managing partner of the platform Tom Dunleavy said, “Solana is a consensus long among almost every allocator we spoke to.” 
As of November 13 end of the day, Solana is trading at $217.98, up 2.23% in the last 24 hours while its trading volume has decreased by 14.80% to reach $10.41 billion and the market cap stands at $103.01 billion.

DeFi Technologies Creates A New Company To Challenge Bitcoin, SolFi To Be The MircoStrategy for Solana

Yellow News

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