Key Highlights
- DeFi Development Corp has priced 2.2 million CHAD preferred shares at $9 apiece, seeking to raise $19.8 million in gross capital.
- Each CHAD share features a $10 stated value with a 13% annual dividend rate at launch.
- Investors purchasing at the $9 offering price receive an initial effective annual yield of approximately 14.44%.
- DeFi Development Corp intends to establish a $2.86 million dividend reserve fund to support first-year dividend payments.
- Capital raised through this offering may support working capital requirements, strategic acquisitions, cryptocurrency investments, and expanded Solana purchases.
DeFi Development Corp has announced pricing details for its latest preferred stock offering as the Solana-focused treasury company pursues additional capital for operational expansion and potential SOL token acquisitions. The Nasdaq-traded corporation has structured the sale of 2.2 million shares of Variable Rate Series C Perpetual Preferred Stock at $9 per share, based on an SEC filing.
The capital raise, designated as CHAD Stock, aims to secure $19.8 million in gross revenue prior to deducting underwriting fees and related expenses. Should the underwriter exercise its overallotment option completely, the total could expand to $22.77 million.
CHAD Stock Structure and Dividend Framework
The CHAD shares come with a $10 stated amount per unit and feature a 13% annual dividend rate at inception. The $9 purchase price delivers an initial effective annual return of 14.44% when calculated against the opening dividend payment.
The dividend structure allows for adjustments throughout the investment period. Company leadership maintains the authority to reassess the rate monthly, considering prevailing market conditions, trading performance, comparable securities yields, and organizational liquidity requirements. Monthly rate decreases are capped at 50 basis points relative to the previous period.
DeFi Development Corp plans to allocate $1.30 per issued share toward a dedicated dividend reserve account upon transaction completion. Based on 2.2 million shares, this reserve would reach $2.86 million and provide coverage for one year of distributions at the opening 13% rate.
The reserve may be funded through cash holdings, financial instruments, or digital currency assets. This reserve does not constitute a binding guarantee, and the corporation holds no obligation to expand it should dividend rates increase or additional CHAD shares enter circulation.
Capital Allocation May Include Additional Solana Purchases
DeFi Development Corp has indicated that net proceeds from this offering could be directed toward working capital needs, SOL token acquisitions, additional digital asset investments, corporate acquisitions, and strategic initiatives. The company has refrained from committing specific dollar amounts to Solana purchases, meaning the entire offering should be viewed as general corporate funding rather than guaranteed SOL accumulation.
The corporation recently acquired approximately 19,000 SOL tokens at an average cost of $98.14 per token. This transaction boosted its total holdings to around 2.33 million SOL and SOL-equivalent assets, encompassing positions connected to staking operations.
DeFi Development Corp has submitted an application to list CHAD shares on the Nasdaq Capital Market. The preferred stock carries no fixed maturity date and holds subordinate status relative to company debt obligations. R.F. Lafferty & Co. serves as the exclusive book-running manager for this offering. Upcoming milestones include the closing date, Nasdaq’s listing approval decision, and the initial scheduled dividend distribution on Oct. 1, 2026.
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