Key Takeaways:
DeFi Development Corp plans to raise up to $20 million in perpetual preferred stock to buy more Solana, the Nasdaq-listed company said Aug. 31.
"The trading activity reflects growing investor understanding of the company's leveraged exposure model," Chief Executive Officer Joseph Onorati said, with month-to-date returns more than twice that of SOL.
The Series C perpetual preferred stock, dubbed "CHAD Stock," carries a stated amount of $10.00 per share and accrues cumulative dividends at an initial annual rate of 13 percent, payable daily. The first regular payment is scheduled for Oct. 1, 2026, and the stock has no stated maturity date. R.F. Lafferty & Co. is the sole book-running manager, with a 30-day option to sell an additional 15 percent of shares.
At closing, the company will set aside a dividend reserve equal to the first 12 months of payments — $1.30 per share — funded from existing cash and digital assets. The remaining proceeds go toward working capital and further Solana purchases, adding to a treasury of about 2.33 million SOL.
The perpetual structure carries no obligation to redeem the shares, while the 13 percent dividend rate sits well above yields on comparable preferred stock. The reserve covers a full year of payments at that rate, cushioning the payout against short-term swings in Solana's price. The offering is registered under a shelf filing on Form S-3 (File No. 333-295142), declared effective by the U.S. Securities and Exchange Commission on April 27, 2026.
Treasury strategy
DeFi Development Corp is the first U.S. public company with a treasury policy allocating its principal holdings to SOL. Beyond holding and staking Solana through its own validator infrastructure, it runs an AI-powered platform selling software subscriptions to commercial real estate professionals. The company resumed its accumulation strategy this month, buying about 19,000 SOL at an average price of $98.14, funded partly by the divestment of its ZeroStack position.
The capital raise deepens a bet that has drawn comparisons to MicroStrategy's leveraged bitcoin treasury. But the model carries a distinct risk: if Solana's price falls, the company's ability to sustain the 13 percent payout from staking and on-chain revenue narrows, and the perpetual preferred shares would absorb the shortfall before common shareholders. Dividend payments begin Oct. 1, 2026, with the offering subject to market conditions and no assurance on final terms.
This article is for informational purposes only and does not constitute investment advice.
