TheBlock
Nasdaq-listed DeFi Development Corp. authorized a program to repurchase up to all outstanding shares of its CHAD preferred stock, including shares issued in the future. The company says it does not currently intend to buy back CHAD and first wants the security to establish itself at its $10 par value. CEO Joseph Onorati said the authorization gives the company another tool if CHAD later trades below par.
Why it matters
The open-ended authorization adds flexibility to DeFi Development’s capital allocation, but it is not a commitment to repurchase shares now. The company describes CHAD as a long-term funding platform and has a $300 million at-the-market program it intends to use to raise capital for additional SOL purchases. It paid CHAD’s first dividend on Oct. 1.
Market impact
The program creates a potential way to support CHAD if it falls below par, while the company’s stated first objective is for the preferred stock to trade at or around $10. Separately, DeFi Development said preliminary third-quarter estimates showed NAV per share more than doubling as its Solana treasury grew to 2.56 million SOL over the past week. DFDV shares rose 3.3% in Tuesday’s session.
Frequently asked questions
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What does DeFi Development’s CHAD buyback authorization allow?
It allows the company to repurchase up to all outstanding CHAD preferred shares, including shares it may issue in the future.
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Does DeFi Development plan to buy back CHAD shares now?
No. The company said it does not currently intend to repurchase CHAD and first wants the security to establish itself at or around its $10 par value.
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How does CHAD relate to DeFi Development’s SOL purchases?
The company intends to use its $300 million CHAD at-the-market program to raise capital for additional SOL purchases.
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What did DeFi Development report about its Solana treasury?
The company said preliminary third-quarter estimates showed its Solana treasury had grown to 2.56 million SOL over the past week.
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What other CHAD milestone did the company report?
DeFi Development paid CHAD’s first dividend on Oct. 1 and described the preferred stock as a long-term funding platform.
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