DeFi Development Rakes In $11M with CHAD Preferred Stock Offering
DeFi Development Corp., a Nasdaq-listed company, has closed its $11 million CHAD preferred stock offering. The transaction, which was completed on September 8, generated approximately $10.3 million in net proceeds for DeFi Development.
The CHAD shares were sold at $8 each, with a $10 stated amount and an initial dividend rate of 13%. This means that investors will receive a yield of around 16.25% based on the current price.
DeFi Development plans to use substantially all of the net proceeds from the offering to purchase additional SOL for its treasury. The company currently holds approximately 2.33 million SOL and SOL-equivalent assets, which includes staking rewards that are variable and cannot be treated as guaranteed income.
The CHAD preferred stock is perpetual and non-convertible, ranking ahead of common equity but behind debt obligations. It also carries a reserve covering 12 months of dividends at the initial 13% rate.