DeFi Development Corp. has proposed selling up to $20 million of Variable Rate Series C perpetual preferred stock, a financing plan that would direct part of the proceeds toward additional purchases of Solana’s SOL token and expand the Nasdaq-listed company’s crypto treasury strategy.
The preferred shares would have a stated amount of $10 each and begin with an annual dividend rate of 13%, according to the company’s announcement. DeFi Development said it would use the capital for SOL acquisitions, other crypto-related investments and general corporate purposes, giving the firm another route to add digital assets without relying solely on common-stock sales or existing cash.
R.F. Lafferty & Co. is the book-running manager for the proposed offering. DeFi Development did not disclose when it expects to price the shares or complete the sale.
A high-cost source of capital for SOL accumulation
The proposed Series C shares are perpetual preferred stock, meaning they do not have a fixed maturity date requiring the company to repay their stated value on a set day. Holders would instead be entitled to dividends, subject to the terms of the offering.
A 13% starting dividend is a substantial obligation for a company using the proceeds partly to buy a volatile digital asset. At the $20 million maximum size, the annual dividend expense at that initial rate would equal roughly $2.6 million before considering any changes under the variable-rate structure.
DeFi Development plans to create a dividend reserve at closing equal to the first 12 months of dividend payments calculated at the 13% rate. The company said that reserve could consist of cash, financial instruments or digital assets.
That structure sets aside resources for the first year of preferred distributions, but it also creates a practical link between the company’s token holdings and its financing commitments if digital assets are used in the reserve. A decline in SOL’s market value could reduce the dollar value of any reserve funded with tokens, while a rally would increase it.
Preferred stock also sits differently from common stock in a corporate capital structure. Preferred holders generally receive dividend rights ahead of common shareholders, although the specific rights and protections depend on the final offering documents. For DeFi Development, the instrument offers a way to raise capital aimed at growing its SOL position while avoiding an immediate issuance of additional common shares.
Treasury reached about 2.33 million SOL
The proposed financing follows DeFi Development’s return to SOL purchases last week. The company said it acquired approximately 19,000 SOL at an average price of $98.14 per token, bringing its holdings to about 2.33 million SOL and equivalents.
At the stated average acquisition price, the latest purchase represented roughly $1.9 million of SOL. The company’s larger reported treasury places its balance sheet closely alongside the performance of Solana’s native token, making its equity increasingly sensitive to changes in the value of those holdings and to its ability to finance further acquisitions.
SOL traded near $103.30 after rising 1.9% over 24 hours, based on the market figures supplied with the announcement. The token was up 41% over the previous month but remained down 17% since the start of 2026, illustrating the price swings that can affect the value of a token-focused corporate treasury.
The company’s shares rose 8.03% on Monday to close at $5.38. They were up 110% over the prior month and flat for the year, according to the supplied market data. The divergence between the stock’s monthly gain and SOL’s year-to-date decline suggests traders have been responding not only to the token’s spot performance, but also to the company’s financing activity and expanding treasury position.
Dividend burden will shape the strategy
The offering’s variable dividend feature leaves an important detail for prospective buyers: the rate begins at 13% but may change under the terms that DeFi Development will set out in its offering documentation. Variable-rate preferred shares can become more expensive if their dividend formula resets upward, particularly if the company’s stock price or other reference measures weaken.
For a digital-asset treasury company, the financing creates a balancing act. Additional preferred-stock proceeds would allow DeFi Development to purchase SOL at a larger scale, potentially increasing the amount of token exposure represented by each common share. Yet the company would also need to meet recurring dividend obligations regardless of whether SOL rises, falls or trades sideways.
The planned reserve reduces near-term payment risk, especially during the first year after closing. It does not eliminate the longer-term cost of maintaining a high-yield preferred security, and the company’s ability to sustain the structure will depend on its liquidity, the eventual dividend mechanics and the performance of its crypto-related holdings.
DeFi Development has previously used equity markets to fund token accumulation. The company completed a $125 million equity transaction at $12.50 per share in August 2025, according to the supplied information. The latest proposal adds a different form of capital: one that offers holders a dividend priority while placing a fixed-income-style claim alongside a balance sheet concentrated in SOL.
The final size and pricing of the Series C sale will determine how much fresh purchasing capacity DeFi Development gains and how large its annual dividend commitment becomes.
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