DeFi Development Corp has priced a new preferred stock offering as the Solana treasury company raises capital for corporate needs and potential additional SOL purchases. The Nasdaq-listed firm plans to sell 2.2 million shares of its Variable Rate Series C Perpetual Preferred Stock at $9 each, according to an SEC prospectus announcement.

The move is part of a broader wave of publicly listed companies that hold a single digital asset as their primary treasury asset — a corporate structure popularized by bitcoin treasury firms and more recently extended to Solana. For such companies, preferred stock and other yield-bearing instruments have become a way to raise capital while their underlying token holdings remain in place.

The offering, known as CHAD Stock, is expected to generate $19.8 million in gross proceeds before fees and expenses. An underwriter option could lift the total to $22.77 million if all additional shares are sold.

CHAD Terms

Each CHAD share carries a $10 stated amount and begins with a 13% annual dividend rate. Because investors pay $9 per share, the initial effective annual yield is 14.44% based on the starting dividend. As preferred stock, CHAD sits between common equity and debt in the capital structure: it ranks below the company's debt but ahead of common shareholders in claims on assets and dividends.

The dividend rate is variable. The board may review it once a month, taking into account market rates, trading conditions, comparable yields, and the company's liquidity needs. Any monthly reduction is capped at 50 basis points below the prior month's rate. That structure gives the board flexibility if market conditions change, while the cap limits how quickly the payout can fall.

At the closing of the deal, DeFi Development Corp intends to place $1.30 per issued share into a separate dividend reserve. For 2.2 million shares, that reserve would total $2.86 million — enough to cover 12 months of payments at the initial 13% rate. The account may be funded with cash, financial instruments, or digital assets. The reserve is not a guarantee, and the company is not obligated to increase it if the dividend rate rises or additional CHAD shares are issued.

Proceeds May Fund More Solana

The company said net proceeds may support working capital, SOL purchases, other digital asset investments, acquisitions, and strategic projects. No fixed amount has been allocated to Solana, so the full offering cannot be treated as a confirmed SOL purchase. Raising capital through preferred stock rather than selling common equity also avoids issuing additional common shares, a consideration for existing shareholders of treasury companies.

The firm recently acquired approximately 19,000 SOL at an average price of $98.14, bringing its treasury to roughly 2.33 million SOL and SOL-equivalent assets, including positions linked to staking activity. Staking allows SOL holders to earn rewards for helping secure the network, one of the features treasury companies cite when holding the token.

DeFi Development Corp has applied to list CHAD on the Nasdaq Capital Market. The preferred stock has no maturity date and ranks below the company's debt. R.F. Lafferty & Co. is serving as sole book-running manager.

Upcoming confirmed milestones include the offering close, Nasdaq's listing decision, and the first scheduled dividend payment on Oct. 1, 2026.