Craig-Hallum bullish on DeFi Development, initiates with a Buy

As previously reported, Craig-Hallum initiated coverage of DeFi Development (DFDV) with a Buy rating and $25 price target given the belief that it is putting together an attractive treasury strategy playbook. The firm sees them as an early inning MicroStrategy building on a blockchain, Solana, that is likely to play an increasingly important role in the intersection of traditional finance and decentralized finance given its superior speed and efficiency. With an improving regulatory and demand backdrop for on-chain assets, Craig-Hallum anticipates a flywheel of capital raises and SOL purchases that should create attractive SOL exposure to a continually widening group of investors. The firm does expect the equity to be volatile given the underlying assets but believes that the team at DeFi is entrenching themselves in the Solana ecosystem and should benefit over the long-term.