DeFi Development Corp. — financial distress indicators
Financial-health summary
DeFi Development Corp.'s reported numbers place it in the 'Weak' financial-health band (distress score 58/100). The main indicators are critically thin capital, consecutive annual losses and deep share-price drawdown. In its favour: revenue still growing (+442% yoy).
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Equity / assets is 4.4% vs a ~10% prudent floor for this business.
Leverage-ratio proxy for regulatory capital (Basel III; U.S. PCA 'well-capitalized' ≥5% leverage; RBI CRAR ≥9% banks / 15% NBFCs). Risk-weighted CET1 is not public in this dataset.
Net loss in each of the last two years.
Sustained losses at a lender usually mean credit losses are outrunning provisions — a risk-management failure.
Price is -74% from its 52-week high.
For financial firms a share-price run often precedes a deposit or funding run (confidence channel).
Total assets grew +6925% in a year.
Hyper-growth outpacing risk controls preceded failures such as Yes Bank (2020) and SVB (2023).
Annualised volatility is 111%.
High equity volatility raises the market-implied default probability.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Revenue still growing (+442% YoY).
📰 Recent news scan
- DeFi Development Corp. recap: 2.5M SOL and equivalents | DFDV Stock News - Stock TitanGoogle News · 2026-10-08
- DFDV Oct 2026 9.000 call (DFDV261016C00009000) interactive stock chart - Yahoo Finance UKGoogle News · 2026-10-07
- DFDV: CHAD and faster SOL-per-share growth are central to amplifying SOL exposure - TradingViewGoogle News · 2026-10-06
- DeFi Development sees NAV per share more than doubling, holds 2.56 million SOL - The BlockGoogle News · 2026-10-05
- Retail investors can ask live questions at DeFi Development Corp.'s August-September recap. - Stock TitanGoogle News · 2026-10-05
- DFDV Should I Buy - Intellectia AIGoogle News · 2026-09-26
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do DeFi Development Corp.'s financial-health indicators show?
As of 2026-10-08, DeFi Development Corp.'s public financial data places it in the 'Weak' band with a distress score of 58/100, driven by critically thin capital, consecutive annual losses and deep share-price drawdown. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is DeFi Development Corp.'s financial distress score?
58/100 ('Weak').
What works in DeFi Development Corp.'s favour?
Revenue still growing (+442% YoY).
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
Other Bank & Finance companies with distress indicators
- CaliberCos Inc. (CWD)Very weak 79/100
- loanDepot, Inc. (LDI)Weak 69/100
- Pineapple Financial Inc. (PAPL)Weak 69/100
- TeraWulf Inc. (WULF)Weak 68/100
- SHF Holdings, Inc. (SHFS)Weak 67/100
- Streamex Corp. (STEX)Weak 67/100
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.