Solana Treasury DeFi Development Launches $300M CHAD ATM Program

Solana treasury company DeFi Development Corp. has launched an at-the-market (ATM) program to issue up to 30 million CHAD preferred shares, creating a potential financing channel for SOL purchases and other corporate uses.

The ATM program is optional and will allow the company to sell shares on the market at any time, with actual proceeds dependent on issuance volume and market prices. The stated amount of each share is $10, which would give the program an aggregate stated value of $300 million if all 30 million shares were issued.

The CHAD preferred shares have a variable rate dividend, initially set at 13% per annum on the $10 stated amount, or $1.30 per share annually. This means that if all 30 million shares were outstanding for a full year at an unchanged rate, they would accumulate around $39 million in dividends.

The company has reported that a portion of net proceeds from the ATM program will be used to acquire SOL, but also noted that working capital and strategic initiatives are permitted uses. The treasury company currently holds 2,388,923 SOL and SOL equivalents, up 55,491 from August 27 due to purchases and organic growth.

The new ATM program follows a separate CHAD offering that closed on September 8 at $8 per share, generating approximately $11 million in gross proceeds. The program's eventual economics will depend on issuance volume and price, the dividend rate over time, and management's allocation of proceeds.