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DeFi Development closes $11 million CHAD preferred stock offering
The CHAD preferred shares carry a 13.0% initial annual dividend rate, with the first regular dividend due Oct. 1.
DeFi Development Corp. has closed and launched its CHAD preferred stock offering, raising $11 million to expand its Solana treasury, according to The Block.
CHAD is structured as a Variable Rate Series C perpetual preferred stock with a 13.0% initial annual dividend rate, which the outlet notes equates to an initial effective yield of about 16.25% based on the offering price. The first regular dividend payment is scheduled for Oct. 1.
The company is using the proceeds to fund additional SOL purchases, providing another mechanism to grow its SOL holdings without issuing additional common shares. DeFi Development also holds about 2.33 million SOL and SOL equivalents after recently resuming Solana purchases, including roughly 19,000 SOL.
The Block says CHAD is similar in concept to Strategy-style preferred stock offerings, but DeFi Development frames CHAD as a “digital credit” instrument backed by Solana staking and validator yield, rather than a bitcoin treasury. DeFi Development CEO Joseph Onorati said the deal is expected to increase SPS without increasing the common share count, and that the firm views CHAD as a way to scale its capital deployment over time.
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