DeFi Development Raises Annual Dividend Rate on CHAD Preferred Shares to 14.00%
Key Facts
DeFi Development raised the annual dividend rate on its CHAD preferred shares from 13.00% to 14.00% for accrual periods beginning November 1, 2026, according to its filing with the U.S. Securities and Exchange Commission. The decision applies to perpetual Series C preferred shares carrying a variable dividend rate under their issuance terms. The new rate equates to calculated annual dividends of $1.40 per share, according to the company's statement attached to the filing. That compares with an annual amount of $1.30 per share at the previous rate. These amounts are based on the stated amount of $10.00 per share, which the company uses to calculate declared dividends.
The company identified market conditions, investor demand and the cost of capital among the considerations guiding its management of the CHAD dividend rate. The prospectus warns that successive reductions could drive the dividend rate lower. In its statement announcing the rate increase, the company also warned that "staking and validator rewards may not be sufficient to support dividend payments." The instrument's terms give preferred shareholders priority over common shareholders for dividends and in liquidation. That priority, however, ranks behind the company's existing and future debt, according to the share issuance filing.
CHAD's initial offering raised about $11 million in gross proceeds before costs, according to the statement announcing the instrument's launch. Net proceeds totaled about $10.3 million after deducting discounts, commissions and estimated expenses, according to the company's filing. At launch, the company explained that CHAD preferred shares cannot be converted into common shares. It said their issuance therefore does not increase the number of the company's common shares trading under the ticker DFDV. Alongside the initial offering, the company established a $300 million at-the-market program for CHAD shares, describing it as an additional source of growth capital.
The program's sales agreement allows the offering of up to 30,000,000 CHAD shares through the sales agent, according to the SEC filing. The company intends to allocate net proceeds from sales to general corporate purposes, including funding working capital. Stated uses also include acquiring Solana digital assets and pursuing the company's strategic initiatives. In a separate treasury update, DeFi Development disclosed that its holdings of SOL and SOL equivalents had risen to 2,586,282 units as of October 9, 2026. Those holdings stood at 2,564,212 units on October 2, 2026, according to the comparison provided in the company's filing.
On trading, the company said in its treasury update that CHAD shares reached new trading highs during the week ended October 9, 2026. It added that the shares rose during that week despite a broader cryptocurrency market selloff. In a separate announcement, the company authorized a program allowing it to repurchase up to all outstanding CHAD shares from time to time. The authorization also covers shares the company may issue in the future, according to its statement published through GlobeNewswire. However, when announcing the authorization, it said it "does not currently intend to repurchase CHAD shares."
The company set October 30, 2026, as the record date for shareholders eligible for the first scheduled payment at the new rate, according to the dividend schedule attached to the filing. That payment is scheduled for November 2, 2026. The scheduled payment amounts to $0.00614 per share, according to the same schedule. The prospectus states that regular dividends are payable each business day. Payment remains subject to board approval, with the prospectus describing payments as being made "when, as and if declared by our board of directors."