DeFi Development Corp. dfdvSOL$102.55+0.8% DeFi Development Corp. proposed its Variable Rate Series C Perpetual Preferred Stock offering on August 31, announcing it had applied to list the instrument on the Nasdaq Capital Market under the ticker "CHAD." The company priced the offering at $9 per share on September 1, selling 2.2 million shares for $19.8 million in gross proceeds before underwriting discounts. Underwriter R.F. Lafferty & Co. holds a 30-day option to purchase an additional 330,000 shares, potentially bringing the total to $22.77 million.
How CHAD's 13% Dividend Rate and Variable Monthly Structure Work
The instrument carries a stated value and liquidation preference of $10 per share against the $9 offering price. Its initial cumulative annual dividend rate of 13% is calculated on that $10 stated value, equal to $1.30 per share annually. At the $9 offering price, that translates to approximately 14.44% effective yield based on the initial 13% dividend rate.
The rate is variable: the board may review and adjust it at least monthly, weighing prevailing interest rates, CHAD's market trading price, comparable yields, and the company's liquidity needs. Any single monthly reduction is capped at 50 basis points from the prior month's rate, so the rate can decline gradually but cannot drop sharply in a single adjustment. The prospectus states the rate could eventually fall below comparable securities over time.
The first dividend is scheduled for October 1, covering the period from issuance through September 30. Thereafter, dividends are payable each business day when the board declares them and funds are available.
Dividend Reserve Account Funded at Closing, Nasdaq Listing Pending
At closing, DeFi Development Corp. will deposit approximately $2.86 million into a dedicated dividend reserve account, covering 12 months of payments at the 13% initial rate across 2.2 million shares, per the SEC prospectus. The company may draw on existing cash, financial instruments, or digital assets to fund it. The reserve is not contractually required to grow if additional CHAD shares are issued or if the dividend rate rises in future periods. In an insolvency, creditors would have access to the reserve ahead of CHAD holders.
Once the Nasdaq listing is approved, the company can redeem CHAD at $11 per share plus any accumulated unpaid dividends, per the offering documents. Additional redemption rights trigger after qualifying tax events or when outstanding shares fall below 25% of all historically issued CHAD. CHAD is a perpetual instrument with no maturity date; holders cannot compel repayment except on specified qualifying corporate events. The shares carry limited voting rights and rank below the company's debt in liquidation.
Proceeds Targeting SOL Purchases Across a 2.33M SOL Treasury
The prospectus designates proceeds for general corporate purposes: purchasing SOL, working capital, acquisitions, and digital asset investments. No fixed percentage of the $19.8 million is earmarked exclusively for SOL.
DeFi Development Corp. disclosed holdings of approximately 2.33 million SOL as of the offering date, after recently acquiring around 19,000 SOL at an average price of $98.14 per token, per the offering documents. The company's financial position is materially tied to SOL price movements, which affect the value of its digital asset holdings.
DFDV common stock, also available on Solana as DFDVx, closed August 31 at $5.38, up 7.8% in that session. DFDV released the pricing after market close. The offering builds on the company's launch of the State of Solana data platform on August 26.
