DeFi Development Corp Launches First Solana-Backed Digital Credit Instrument
DeFi Development Corp (DFDV) has launched CHAD, a new digital credit instrument backed by its Solana (SOL) treasury strategy. The company issued $11 million in gross proceeds through an underwritten public offering of Variable Rate Series C Perpetual Preferred Stock at $8 per share. This represents a discount to the stated amount of $10 per share.
CHAD carries an initial annual dividend rate of 13%, equivalent to an effective yield of approximately 16.25% based on the offering price. The company plans to use the net proceeds primarily to acquire additional SOL.
The preferred stock structure draws comparisons with Strategy's (MSTR) model, which has used preferred securities as a source of capital for its Bitcoin treasury without issuing additional common shares.