DeFi Development Expands Solana Holdings with Strong Q3 Growth
DeFi Development Corp. has reported significant growth in its Solana-focused holdings as preliminary third-quarter figures indicate a sharp rise in asset value per share. As of September 30, the company's net asset value per share more than doubled since August 12, with its Solana treasury reaching approximately 2.56 million SOL, valued at around $302 million. The increase reflects an 11% growth in SOL holdings since the last update on August 12, alongside a doubling of cash and cash equivalents and a reduction in SOL-denominated borrowings.
Chief Executive Joseph Onorati highlighted the company's strategy of continuously accumulating SOL, aiming to increase both the net asset value per share and the SOL per share. DeFi Development has established a $300 million at-the-market program for its CHAD preferred stock, with proceeds earmarked for further SOL purchases. This model is designed to create a capital flywheel, generating yield and enhancing the value of common shares.
On October 1, CHAD paid its first dividend, marking a milestone for the Nasdaq-listed variable-rate preferred stock. The dividend carries a 13% annual rate, equivalent to $1.30 per share annually. CHAD was launched in September through an $11 million offering, intended to fund additional SOL purchases without diluting common shareholders. Despite a 2% rise in DeFi Development shares on Monday, the stock remains down nearly 70% year-over-year.