Catenaa, Wednesday, September 09, 2026- DeFi Development Corp. closed an $11 million preferred-stock offering tied to its Solana treasury strategy, giving the Nasdaq-listed company fresh capital to buy more SOL without issuing additional common shares.
The company launched CHAD, its Variable Rate Series C perpetual preferred stock, with an initial annual dividend rate of 13%.
DeFi Development describes the security as the first Solana-backed “Digital Credit” instrument.
The offering gives the company another funding route as it seeks to increase the amount of SOL held for each common share.
Substantially all net proceeds are expected to be deployed into additional SOL, according to DeFi Development.
The $11 million transaction also included participation from Fundstrat co-founder and research chief Tom Lee.
CHAD carries a stated value of $10 per share, while the securities were offered below that level.
The pricing gives investors an initial effective yield of about 16.25%, based on the offering price and 13% initial dividend rate.
The first regular dividend payment is scheduled for October 1.
Unlike common stock, CHAD is perpetual and has no stated maturity date.
The dividend rate can also change over time rather than remaining fixed permanently.
DeFi Development is positioning the instrument as a way to raise permanent capital while limiting dilution for existing common shareholders.
Chief Executive Joseph Onorati said the transaction is expected to increase the company’s SOL per share without increasing its common share count.
The longer-term plan is to establish CHAD near its stated value and expand the program as another source of funding for SOL accumulation.
The structure draws clear comparisons with Strategy, the Bitcoin treasury company that has increasingly used preferred securities to finance Bitcoin purchases.
Strategy has developed several preferred-stock products alongside common equity and debt financing as it expands its Bitcoin holdings.
DeFi Development is applying a similar capital-markets model to Solana.
However, the company argues that SOL creates a different economic structure because the tokens can generate staking and validator rewards after acquisition.
Bitcoin itself does not generate native staking yield.
That distinction gives DeFi Development a potential income stream from the assets purchased with proceeds from its securities offerings.
The company can hold SOL while also deploying part of its treasury through staking and validator operations.
Returns from those activities can then contribute to its broader treasury strategy.
DeFi Development recently restarted its SOL accumulation program after acquiring roughly 19,000 SOL.
That transaction increased its holdings to about 2.33 million SOL and SOL equivalents.
The CHAD proceeds could now add further buying capacity without requiring another common-stock issuance.
Avoiding immediate common-share dilution has become an increasingly important issue for publicly traded digital-asset treasury companies.
Many such companies have relied heavily on at-the-market stock sales or other equity programs to finance cryptocurrency purchases.
Those programs can expand digital-asset holdings but also increase the number of shares outstanding.
That can weaken gains in crypto holdings on a per-share basis if asset accumulation does not outpace dilution.
DeFi Development has placed SOL per share at the center of its treasury strategy.
The company refers to that measure as SPS and seeks to increase the amount of Solana represented by each share of common stock.
CHAD is designed to help fund that strategy by creating another class of capital above the common equity.
Preferred shareholders receive dividend rights and rank ahead of common shareholders for certain distributions.
They do not, however, receive the same position as traditional secured creditors.
The model could become more attractive to crypto treasury companies if investors continue accepting preferred securities carrying higher yields.
For investors, those yields come with risks tied to both the issuer and its digital-asset strategy.
DeFi Development’s ability to finance dividends and expand its treasury will remain exposed to Solana prices, staking economics and broader capital-market conditions.
The 13% initial dividend also represents a relatively high financing cost.
For the company, the calculation is that SOL accumulation, staking income and potential appreciation can justify that cost while preserving common equity.
The offering reflects a broader shift among digital-asset treasury companies toward more complex financing structures.
The first wave of corporate crypto treasuries relied mainly on cash, convertible debt and common-stock sales.
Preferred securities are now emerging as another method for separating investors seeking income from shareholders seeking greater exposure to crypto-linked equity appreciation.
DeFi Development is attempting to extend that model beyond Bitcoin.
Its strategy centers on accumulating SOL while operating infrastructure connected with the Solana network.
Solana uses a proof-of-stake system, allowing token holders to stake SOL and earn rewards for supporting network validation.
That feature gives treasury operators opportunities to earn returns on holdings rather than leaving the tokens inactive.
CHAD could therefore serve two purposes if the program expands.
It can raise money for additional SOL purchases while the acquired assets may generate recurring staking income.
The company believes scaling that cycle could accelerate SOL accumulation and increase SOL held per common share.
Whether the strategy succeeds will depend partly on investor demand for CHAD after its initial offering.
Trading near its stated value could make additional preferred-stock issuance more practical.
A sustained discount could make future offerings more expensive.
For now, the $11 million closing gives DeFi Development another financing mechanism as competition intensifies among publicly traded companies building large digital-asset treasuries.
It also marks another step in adapting Strategy’s Bitcoin-focused corporate treasury playbook to Solana and other crypto assets.
