DeFi Development Corp. is turning to preferred stock as it looks for more capital to support its Solana-focused strategy. The company has priced its new CHAD offering at $9 per share, potentially bringing in more than $22 million if demand allows. Investors are also being offered a sizable initial dividend, although the rate can change over time.
CHAD targets $19.8 million
DeFi Development plans to sell 2.2 million CHAD shares at $9 each, raising about $19.8 million. Underwriter R.F. Lafferty & Co. can buy another 330,000 shares within 30 days, potentially lifting the total to $22.77 million. Each share has a stated value of $10 and an initial annual dividend rate of 13%, equal to $1.30 per share. At the $9 offering price, that translates to an effective initial yield of roughly 14.44%.
Dividend payments begin October 1, with the variable rate reviewed at least monthly. DeFi Development also plans a roughly $2.86 million reserve covering one year of dividends at the initial rate. CHAD has no maturity date, while holders receive limited voting rights. The preferred stock also ranks behind the company’s existing and future debt.
Solana strategy continues
Proceeds could help DeFi Development expand its Solana holdings, but investors should not assume the entire $19.8 million will go toward SOL. Management can also use the money for working capital, other digital assets, acquisitions and broader strategic initiatives.
Recent purchases underline the company’s continued focus on Solana. DeFi Development acquired roughly 19,000 SOL at an average price of $98.14 last week, bringing its SOL and SOL-equivalent holdings to approximately 2.33 million tokens.
Next comes a potentially important step for CHAD itself. DeFi Development has applied to list the preferred stock on the Nasdaq Capital Market under the ticker CHAD, with approval still pending. Investors will now be watching the offering’s closing, Nasdaq’s decision and the first dividend payment on October 1.
