DeFi Development Unveils $300M CHAD Offering with 13% Dividend Yield
Solana treasury company DeFi Development Corp has introduced an at-the-market (ATM) program to issue up to 30 million CHAD preferred shares, creating optional financing capacity for further SOL purchases and other corporate uses. The program is backed by a 13% dividend catch, which could accumulate $39 million in dividends annually if all shares were outstanding for a full year.
The CHAD offering has an aggregate stated amount of $300 million, with cash proceeds dependent on actual issuance volume and market prices. DeFi Development Corp is not obligated to issue shares, while the agent, R.F. Lafferty, is not required to sell a specific number or dollar amount. The company will cover specified offering expenses.
The board determines the regular annual rate of dividends at least monthly, with any monthly reduction limited to 50 basis points and subject to timing, prior-dividend, and market-price conditions. A portion of net proceeds from the CHAD offering will be used to acquire SOL, while working capital and strategic initiatives are also permitted uses.