DeFi Development Corp.'s Solana Treasury Surpasses 2.5 Million SOL Amid Rising Dividend Costs

DeFi Development Corp.'s (DFDV) Solana treasury has surpassed 2.5 million SOL, marking a significant milestone for the company's accumulation strategy. The treasury now holds approximately $309 million in value.

The growth of DFDV's SOL position is largely driven by its use of CHAD, a Variable Rate Series C Perpetual Preferred Stock, which has been issued to finance additional SOL purchases. However, the initial CHAD offering came with an 16.25% annualized dividend cost relative to gross proceeds at the current rate.

This translates to a $1.30 per share annual distribution against the $8 DFDV initially received per share, or approximately $2.06 million in annualized dividends against the initial $12.65 million in gross proceeds.