DeFi Development Closes $11 Million CHAD Offering, Targets More SOL

Key Facts

DeFi Development Corp., listed on Nasdaq under DFDV, closed an underwritten public offering on September 8 covering 1,375,000 shares of its Variable Rate Series C Perpetual Preferred Stock, known as CHAD. The shares were sold at $8.00 each, generating about $11.0 million in gross proceeds.

The company’s filing with the U.S. Securities and Exchange Commission reported about $10.3 million in net proceeds after underwriting discounts and estimated expenses. The filing listed uses including working capital, SOL purchases and strategic initiatives, while a separate company release said it expected to direct substantially all net proceeds to additional SOL.

CHAD is non-convertible perpetual preferred stock with a $10.00 stated amount per share and an initial annual dividend rate of 13.0%. That equates to an initial effective yield of about 16.25% relative to the $8.00 offering price, according to the company.

CHAD dividends accumulate daily but are payable only when declared by the board and from legally available funds. The company may adjust the rate within restrictions specified by the security’s terms, making both investor yield and DFDV’s financing cost variable over time.

CHAD is listed on Nasdaq under the ticker CHAD. Because it is non-convertible, the issuance does not increase DFDV’s common-share count. Management expects deploying the proceeds into SOL to increase SOL per common share, although that forecast depends on purchase timing and execution prices.

The transaction gives DFDV capital without issuing new common shares, but it adds a preferred claim that ranks ahead of common equity and behind company debt. Investors will next be watching the amount of SOL acquired, average cost and change in SOL per share, alongside CHAD dividend decisions and the company’s ability to fund them.