DeFi Development Corp. has raised $11 million through a new perpetual preferred stock offering and plans to use the proceeds to buy more Solana, extending a treasury strategy that has brought its holdings to roughly 2.33 million SOL and SOL equivalents.
The Nasdaq-listed company priced 1.375 million shares of its Variable Rate Series C perpetual preferred stock, branded CHAD, at $8 each. The offering includes a 30-day option for underwriters to purchase up to 206,250 additional shares, which could increase the gross proceeds if fully exercised.
DeFi Development said the financing gives it additional capital to accumulate SOL without issuing common stock. That structure places the cost of funding on preferred shareholders through dividends rather than immediately diluting existing common shareholders, while leaving the company’s exposure closely tied to the performance and yield potential of its Solana treasury.
Chad preferred shares begin with a 13% dividend
CHAD carries an initial annual dividend rate of 13%, with the company listing an initial effective yield of about 16.25% at the $8 offering price. The difference reflects the discount to the preferred stock’s $10 stated value.
The first regular dividend payment is scheduled for Oct. 1. As a perpetual preferred stock, CHAD does not have a standard maturity date requiring DeFi Development to repay principal on a fixed date. Its variable-rate structure means the dividend terms can change under the security’s governing provisions.
DeFi Development has described the instrument as a SOL-backed “digital credit” product. The label reflects an attempt to package a public company’s digital-asset treasury into a more familiar income-oriented security, giving buyers dividend exposure while the issuer uses the capital to add to its crypto holdings.
The company’s approach resembles the preferred-stock financing model used by Strategy, formerly known as MicroStrategy, which has issued several preferred securities to support its Bitcoin accumulation strategy. DeFi Development is applying a similar corporate-finance framework to Solana, a network whose tokens can also generate staking and validator-related rewards.
That distinction affects the economics of the strategy. Bitcoin does not produce native staking income, while SOL held and delegated through validators may generate rewards. Those returns could help offset part of the dividend burden associated with preferred financing, though they remain dependent on network conditions, validator performance, token prices and the company’s operating decisions.
Treasury reaches about 2.33 million sol
The new preferred offering follows DeFi Development’s return to Solana purchases. The company recently acquired about 19,000 SOL, bringing its disclosed holdings to about 2.33 million SOL and SOL equivalents.
At a SOL price around $105, that position would imply a market value above $244 million, although the value of the treasury will move with the token’s price and with the composition of assets included in the company’s “SOL equivalents” calculation.
The size of the position makes DeFi Development one of the more direct public-market vehicles for exposure to Solana’s token economy. Common shareholders retain exposure to the company’s treasury and operations, while CHAD holders are being offered a defined income stream that ranks ahead of common equity in the corporate capital structure.
Fundstrat co-founder Tom Lee participated in the offering, according to DeFi Development. Lee has become one of the more prominent advocates of public companies using capital-markets instruments to build cryptocurrency treasuries, particularly through his involvement with firms pursuing crypto-focused balance-sheet strategies.
A more expensive form of sol accumulation
The transaction gives DeFi Development a way to acquire SOL without selling more common equity, but it also creates a recurring obligation. A 13% initial dividend rate is materially higher than the cost of traditional corporate borrowing for many established companies, reflecting the risks attached to a perpetual, crypto-linked preferred security.
For the strategy to work over time, the company will need to manage the relationship between three moving parts: the market value of its SOL reserves, the yield produced by staking or validator activity, and the cash or share-based dividends owed to CHAD holders.
If SOL appreciates or staking revenue remains strong, the company could have more flexibility to service the preferred dividend while continuing its accumulation program. A sustained decline in SOL, lower network rewards, or higher funding needs would place greater pressure on the balance sheet.
The preferred structure also introduces a different set of incentives than a conventional spot purchase. DeFi Development is no longer simply deciding how much cash to allocate to SOL; it is using a security with income obligations to expand an already large token position. That can accelerate treasury growth, but it links the company’s financing costs more tightly to the durability of its crypto strategy.
Public companies test new treasury financing tools
DeFi Development’s offering adds another example of crypto treasury companies borrowing from traditional capital-markets playbooks rather than relying solely on common-share sales, convertible debt or retained cash.
Preferred shares occupy a middle ground between debt and common equity. They generally offer priority over common stock for dividends and liquidation claims, but usually do not carry the same voting rights as common shares. For issuers, they can preserve common-share ownership while raising capital. For buyers, they offer a stated yield but carry the risk that dividends may be deferred or that the issuer’s asset base declines.
In DeFi Development’s case, that asset base is increasingly dominated by Solana. The $11 million raise is small beside the estimated value of its existing SOL holdings, but it shows the company intends to keep using capital-market products to build the treasury rather than treating its current 2.33 million SOL position as a fixed allocation.
Want deeper context on Solana-focused treasuries and institutional adoption? Explore our insights in today Solana treasuries form.
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