DeFi Development Raises CHAD Preferred Stock Dividend to 14% as Solana Holdings Reach 2.59 Million SOL
DeFi Development Corp., a publicly traded company focused on building its Solana treasury, is increasing the annual dividend rate on its Nasdaq-listed CHAD preferred stock from 13% to 14%, effective November 2. The change raises annual dividend payments from $1.30 to $1.40 per share, based on CHAD’s stated value of $10, representing a 7.7% increase in annual dividend income per share.
The announcement comes as DeFi Development continues accumulating Solana (SOL), with its treasury reaching approximately 2.59 million SOL and SOL equivalents. The company uses its digital asset holdings and related activities to support its treasury strategy while offering investors a preferred stock designed to generate recurring income.
CHAD Preferred Stock Dividend Rises to 14%
Launched in September, CHAD is a variable-rate perpetual preferred stock that allows DeFi Development to raise capital for additional SOL purchases. Its cumulative dividends are payable each business day, subject to approval by the company’s board of directors.
Unlike common shares, CHAD is structured primarily around dividend income rather than direct participation in increases in the company’s stock price. Its dividend rate can also change in response to market conditions and the company’s financing strategy.
At a purchase price of $10 per share, the new 14% annualized dividend rate corresponds to a 14% annualized yield. Investors buying at a different price could receive a different yield, and actual returns depend on the company maintaining its dividend payments.
DeFi Development Uses CHAD to Fund Solana Accumulation
DeFi Development established a $300 million share issuance program for CHAD in September. Proceeds are intended primarily to finance further SOL accumulation, providing the company with an additional way to raise capital for its digital asset treasury.
The company generates returns from its SOL holdings through staking, validator operations and other treasury strategies. These activities provide a source of revenue that can help support its dividend obligations, although the available income and the ability to maintain payments remain subject to operating and market conditions.
Solana Treasury Reaches Approximately 2.59 Million SOL
DeFi Development reported on Monday that its holdings had reached approximately 2.59 million SOL and SOL equivalents after adding around 22,070 SOL over the previous week. The company’s treasury has increased by 12% since its August earnings report.
The dividend adjustment follows a period of mixed performance for the company’s securities. CHAD reached record trading highs during the week ending October 9, while DeFi Development’s common shares faced pressure alongside the broader cryptocurrency market.
CHAD Repurchase Program and Dividend Risks
Earlier in October, DeFi Development authorized a CHAD repurchase program that permits the company to buy back preferred shares if market conditions warrant. Management said it had no immediate plans to begin repurchases.
The strategy reflects an approach used by publicly traded cryptocurrency treasury companies seeking financing structures to accumulate digital assets. DeFi Development’s Solana holdings can generate native staking rewards, distinguishing its model from Bitcoin treasury companies that do not earn staking rewards from Bitcoin itself.
However, the company’s ability to sustain CHAD dividend payments remains exposed to SOL price volatility, operating performance and future financing conditions. The higher stated dividend rate does not eliminate those risks or guarantee that payments will continue unchanged.
source: cryptobriefing
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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