DeFi Development Prices CHAD Stock Offering at $9 Per Share
DeFi Development Corp., which operates the Solana treasury company, has priced its Variable Rate Series C Perpetual Preferred Stock offering at $9 per share. The stock offering, known as CHAD, will raise approximately $19.8 million before underwriting commissions and other expenses.
The initial dividend rate on CHAD is 13%, calculated against the $10 stated amount per share. This represents an effective annual yield of around 14.44% at the offering price of $9 per share.
DeFi Development intends to use the net proceeds for general corporate purposes, including working capital, Solana purchases, other digital asset investments, acquisitions, and strategic initiatives. The company has not provided a fixed portion for SOL (Solana) purchases, warning investors that proceeds invested in SOL will remain exposed to price volatility.
CHAD is perpetual and has no maturity date, with holders generally unable to demand repayment except after certain qualifying corporate events. The shares carry limited voting rights and rank below the company's present and future debt.