DeFi Development Authorizes CHAD Preferred Stock Buyback Program

DeFi Development Corp., a Nasdaq-listed company focused on Solana treasury management, has authorized a program to repurchase up to all outstanding shares of its CHAD preferred stock. This includes any shares the company may issue in the future, providing flexibility to buy back securities if they trade below their $10 par value. The company emphasized that it does not currently intend to repurchase CHAD but aims to establish the stock at or around par before considering any buybacks.

CEO Joseph Onorati stated, 'Our first objective is simple: get CHAD to par.' He clarified that the authorization is about setting up infrastructure for potential future buybacks rather than an immediate action. This move adds another tool to DeFi Development's capital allocation strategy, complementing its existing $300 million CHAD ATM program, which is used to raise capital for additional SOL purchases.

Onorati views CHAD as a long-term funding platform, not a one-time issuance. The firm paid the first dividend on CHAD on October 1. Additionally, preliminary third-quarter estimates indicate that DeFi Development's net asset value (NAV) per share has more than doubled as its Solana treasury grew to 2.56 million SOL over the past week. DFDV shares rose by 3.3% during Tuesday's trading session.