CryptoSlate
Solana treasury company DeFi Development Corp. has opened an at-the-market program for up to 30 million CHAD preferred shares, creating an optional financing channel that could support further SOL purchases alongside other corporate uses. The $10 stated amount per share puts the program's aggregate stated value at $300 million, though cash proceeds will depend on actual issuance volume and market prices.
CHAD is variable-rate perpetual preferred stock, and the continuing cost is its cumulative dividend: 13% annually on the $10 stated amount, or $1.30 per share. If all 30 million ATM shares were outstanding for a full year at the initial rate, they would accumulate $39 million in annualized dividends. The board reviews the rate at least monthly, with any monthly cut limited to 50 basis points. The September 11 prospectus sets no minimum offering amount, and neither party is obligated to transact.
Why it matters
The structure gives DeFi Development a third financing route alongside common-share sales and a separate CHAD offering that closed September 8 at $8 per share, generating roughly $11 million gross. A portion of net proceeds is earmarked for SOL acquisition, but working capital and strategic initiatives are also permitted, leaving management broad discretion with no fixed token allocation.
The 13% payout echoes a broader pattern among digital asset treasury vehicles, where preferred shares with double-digit dividends are being used to attract yield-seeking capital. BitMine's Ethereum-focused preferred offers 9.5% under a similar logic, and the dividends only pencil out if the underlying treasury assets appreciate faster than the accrual.
Market impact
The company reported 2,388,923 SOL and SOL equivalents as of September 11, up 55,491 from August 27 through purchases and organic treasury growth. The ATM itself adds future financing capacity rather than immediate buying pressure, since the disclosed causes of the recent increase exclude ATM proceeds.
What to watch is issuance cadence and the board's rate decisions.
Frequently asked questions
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What is CHAD preferred stock?
CHAD is variable-rate perpetual preferred stock issued by DeFi Development Corp. with a $10 stated amount used to calculate dividends. Its market price and eventual sale prices can differ from that stated amount.
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How large is the new ATM offering?
The program covers up to 30 million CHAD shares, giving an aggregate stated amount of $300 million. Actual cash proceeds depend on issuance volume and market prices, and no minimum offering amount is set.
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What dividend does CHAD pay?
Regular dividends initially accrue at 13% per year on the $10 stated amount, equivalent to $1.30 per share annually. If all 30 million ATM shares were outstanding for a full year, they would accumulate roughly $39 million in annualized dividends.
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Will the proceeds go toward buying SOL?
DeFi Development says a portion of net proceeds will acquire SOL, but working capital and strategic initiatives are also permitted uses, with no fixed allocation to the token.
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How much SOL does DeFi Development hold?
The company reported 2,388,923 SOL and SOL equivalents as of September 11, an increase of 55,491 from August 27, attributed to purchases and organic treasury growth.
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