DeFi Development Corp. Q2 FY26 Results

Owning a Digital Asset Treasury (DAT) in 2026 requires an iron stomach. Fortunately, our whole team has one. Performance among DATs has struggled since August 2025 as we entered a crypto bear market and capital rotated toward other themes. In particular, we believe the flows into AI-related equities, specifically semiconductors and memory, play a large role in crypto's underperformance year-to-date. To put a finer point on this, in Q2, Roundhill's Memory ETF DRAM pulled in $20.0B in inflows. Over that same time period, BTC ETFs saw more than $4.9B in outflows. We are confident that DATs will have their moment in the sun when the crypto market recovers. Until then, we remain committed to matters under our control. We do not control the price of SOL, the pace of the cycle, or sentiment around DATs. The market controls those. We control how we operate: growing SOL per share, managing leverage, lowering our cost structure, and communicating clearly with investors. None of these levers require a bull market to work. When the cycle turns, every DAT will be handed the same market: the same crypto prices and the same window to accumulate. What will differ is how effectively each company translates that recovery into shareholder returns. We believe DFDV is positioned to do that better than anyone else. Our reasons include: Intelligent leverage: unsecured, long-dated convertible debt that does not mature until 2030, which means no margin calls and no forced selling before the bull market arrives. Shareholder alignment: our founders and executives own approximately 20% of the company, and members of the founding team have added to their positions with their own capital. We remain shareholders first. Durability: founders and executives retain control of our supervoting preferred shares, protecting our long-term strategy from the short-term pressures that have distracted several competitors at the bottom of the cycle. Real crypto expertise: our organic yield remains well above that of benchmark passive vehicles or competing SOL DATs. Individually, each pillar strengthens the long-term outcome for DFDV. Together, they compound. This bear market has tested each of them and, in our view, reinforced their value. We spent our first year proving that DFDV could outperform the broader DAT space. We built the highest-yielding DAT and remain the only Solana DAT with positive equity returns since launch. Even through the worst stretch this sector has seen, we grew SOL per share ("SPS") 24% over the trailing twelve months. We tested a broad set of strategies, learned what works, and are applying those lessons to further accelerate SPS growth. As we prepare for the next crypto bull run, we are leaning into what DFDV is at its core: leveraged SOL exposure that compounds SPS faster than its peers. When an investor buys DFDV, they should know that they are buying leveraged SOL exposure, amplified by disciplined capital markets execution. Everything we do over the next twelve months and beyond will continue to sharpen that identity. That focus is driving several changes. We will opportunistically retire our convertible debt — not to reduce leverage, but because our debt trades at a steep discount to par, allowing us to grow SPS over the long term. Alternative forms of leverage, including preferred equity, remain on the table. On the cost side, we have already unlocked meaningful operating efficiencies that we expect will reduce our Q3 cost base. Lastly, we are simplifying our onchain footprint and discontinuing the Treasury Accelerator (TA) program. We are taking these actions because we believe a market recovery is on the horizon and we want to maximize our flexibility as Solana recovers. Solana's fundamentals remain compelling. Tokenized equities are the clearest expression of how far the Solana network has come. In June of this year, Solana processed $6.5B of tokenized equity volume, up 254x from June of 2025. To date, roughly 96% of all tokenized equity spot volume has settled on Solana, and total RWA value on the network continues to set new highs. Solana's tokenized equity TVL grew 192% YTD to $511M, representing 20% of all tokenized equity TVL. Tokenization has been central to our Solana thesis from the beginning. In May of last year, we became the first Nasdaq-listed company to tokenize its own stock, floating DFDVx onchain well before tokenized equities became a consensus theme. Earlier this year, we published SOL and The Digital City, our research framework laying out why asset tokenization would become the largest structural demand driver for SOL. And through our early investment in Apyx, today the single largest holder of tokenized equities, we hold a strategic position in the layer that is accelerating the movement of traditional assets onchain. Tokenization matters to us for one simple reason: it flows through to the value of SOL. Every asset issued or traded on Solana consumes block space, generates fees, and deepens the network's role as the settlement layer for the world's financial assets. Our treasury asset is, and will remain, SOL. That said, we are actively exploring additional ways for DFDV to participate in and accelerate RWA tokenization. Anything we pursue on the tokenization front will meet the same bar as everything else we consider going forward: it must sharpen, not dilute, our identity as leveraged SOL exposure. Our goal is to make sure that when capital rotates back into crypto, DFDV is the simplest public-market vehicle to underwrite for leveraged SOL exposure — and the default choice for investors who want it. I have been through several crypto cycles since 2013, and the pattern rarely changes. The companies that emerge strongest are not the ones that call the bottom of the cycle. They are the ones that use the downturn to build: to simplify the balance sheet, lower the cost base, sharpen focus, and keep accumulating when it is uncomfortable to do so. This is the year we just had, and it is why I am more confident in DFDV today than I was when SOL traded at over three times the current price. Thank you for your continued trust. In Service of SPS Growth,