DeFi Development Corp Approves Open-Ended Buyback for CHAD Preferred Stock

DeFi Development Corp. (Nasdaq: DFDV) has approved an open-ended buyback program for its CHAD preferred stock, allowing the company to repurchase all outstanding and even future shares. The board authorized this move on October 6, 2026, with no fixed end date. CHAD, the market nickname for DFDV’s Variable Rate Series C Perpetual Preferred Stock, has a par value of $10 per share and is non-convertible.

The buyback will only occur when CHAD shares trade below the $10 par value, and management considers them an attractive purchase. CEO Joseph Onorati emphasized that the priority is to establish CHAD at or near its par value before any repurchases begin.

CHAD was introduced on September 8, 2026, with an initial offering of 1.375 million shares sold at $8 each, raising around $11 million. The stock carries an initial annual dividend rate of 13%, resulting in an effective yield of approximately 16.25% at the offering price. The variable rate means the dividend could change over time.

The proceeds from CHAD issuances are primarily used to acquire SOL, the native token of the Solana blockchain. DFDV already holds a $300 million at-the-market (ATM) program for issuing CHAD shares, allowing gradual sales into the open market. The buyback program complements this, providing flexibility to issue shares when demand is high and repurchase them when undervalued.

While the buyback program enhances DFDV’s capital management, it introduces risks. Repurchasing CHAD shares could reduce funds available for buying SOL, potentially slowing the company’s core accumulation goal. Additionally, the dividend obligation remains regardless of SOL’s performance.