DeFi Development Corp., the Nasdaq-listed Solana treasury company trading as DFDV, has authorized an open-ended program allowing it to repurchase up to all outstanding shares of its CHAD preferred stock, including shares issued in the future. The company said the authorization is intended to provide a potential response if CHAD trades below its $10 par value, though it stressed that no repurchases are currently planned.
Chief Executive Officer Joseph Onorati said DeFi Development wants CHAD to establish trading near its $10 par value before considering purchases under the new authorization. In the company’s statement, Onorati described the measure as infrastructure that gives management an additional capital-management option rather than an immediate market intervention.
The authorization places a potential buyer in the market if CHAD falls materially below par, but it does not require the company to support the price or commit a fixed amount of capital. Any decision to repurchase shares would remain subject to the board’s discretion, available cash and management’s assessment of other uses for capital, including purchases of Solana’s SOL token.
Repurchase option sits beside $300 million ATM plan
The buyback authorization joins DeFi Development’s existing $300 million at-the-market, or ATM, program for CHAD. Under an ATM program, a company can sell securities gradually into the public market rather than completing one large offering at a fixed date and price.
DeFi Development has previously said it intends to use proceeds from CHAD sales under the ATM program to acquire additional SOL. That structure makes the preferred stock part of the company’s treasury strategy: capital raised through CHAD issuance could expand its token holdings, while the new authorization could allow the company to buy CHAD back if management believes the shares are trading below an acceptable level.
The two programs point in opposite directions depending on market conditions. Issuing CHAD raises fresh capital but increases the number of preferred shares outstanding. Repurchasing CHAD would reduce outstanding shares, though it would also use capital that could otherwise support SOL purchases or other corporate needs.
For holders, the effectiveness of the repurchase authorization will depend less on its existence than on the conditions under which DeFi Development chooses to use it. The company has not announced a spending limit, target price below par, timetable or minimum volume for possible repurchases. Its statement instead framed the program as a standing option tied to CHAD’s ability to trade near the $10 reference value.
First dividend follows launch of preferred stock
DeFi Development said it paid CHAD’s first dividend on Oct. 1, without disclosing the amount in its statement. The preferred stock carries a 13% annual dividend rate, according to the terms referenced by the company.
A stated dividend rate can make preferred shares attractive to traders seeking recurring cash payments, but the rate does not remove the market risks surrounding a newly issued security. CHAD’s trading price can move above or below its $10 par value, while its dividend depends on the issuer’s ability and decision to continue making payments under the stock’s terms.
The company’s emphasis on par-value trading also reflects a practical issue for its ATM strategy. If CHAD trades consistently below $10, additional issuance could be less appealing or require the company to raise capital at a discount to the stock’s stated value. A market price at or near par would give DeFi Development a cleaner basis for using the ATM program to finance further SOL accumulation.
Solana holdings reach 2.56 million SOL
The announcement arrives as DeFi Development continues to build its Solana treasury. On Monday, the company said preliminary third-quarter estimates showed its net asset value per share had more than doubled as its SOL holdings reached 2.56 million tokens.
DeFi Development said in early-October filings that it had added 26,203 SOL in one week. The company said the holdings had a fiat value above $302 million at the time of the disclosure, although the dollar value of the treasury will move with SOL’s market price.
The company did not provide the previous total of SOL holdings in its Monday update, making it difficult to measure the precise percentage increase in tokens from that disclosure alone. Its reported NAV-per-share growth nevertheless ties the value of DFDV’s equity story closely to the expansion and market performance of its Solana reserve.
That connection creates a different profile from a conventional operating company. DeFi Development’s ability to use CHAD issuance to fund SOL purchases depends on demand for the preferred stock, while the value of the underlying treasury depends heavily on movements in SOL. A lower SOL price could reduce the dollar value of the company’s holdings even if its token count continues to rise.
DFDV shares rose 3.3% during Tuesday’s session, according to the company’s statement. The company did not disclose the share-price level in that update.
CHAD’s early trading activity will now carry added relevance for DeFi Development’s financing model. A sustained price near par could support the company’s planned ATM issuance, while a sharp discount would test whether management is willing to deploy the newly approved repurchase authority rather than preserve capital for additional SOL purchases.
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