DeFi Development Raises $11M to Expand SOL Treasury

DeFi Development completed an $11 million CHAD preferred-stock offering on 8 September, raising about $10.3 million after fees. The Nasdaq-listed company sold 1.375 million perpetual, non-convertible preferred shares at $8 each. CHAD has a $10 stated value and a variable 13% annual dividend rate, implying an initial yield of about 16.25% at the offering price. Dividends are discretionary and payable only when declared by the board and permitted by law. The first payment is scheduled for 1 October, with 30 September as the record date. DeFi Development said it plans to use substantially all net proceeds to purchase more SOL, although the offering documents also permit spending on working capital and strategic initiatives. Before the financing, the company held about 2.33 million SOL and SOL-equivalent assets. It also operates validator infrastructure and stakes SOL through external validators. Fundstrat co-founder Tom Lee participated in the completed offering. The financing was smaller than the previously proposed $19.8 million transaction, which would have involved 2.2 million shares at $9 each. CHAD ranks ahead of common stock for dividends and liquidation but behind company and subsidiary debt. For SOL traders, the deal supports DeFi Development’s long-term SOL treasury strategy and could create additional institutional buying demand. However, the near-term effect on SOL prices is likely limited unless the company’s purchases become large relative to market liquidity. Dividend obligations, execution risks and CHAD’s liquidity also add balance-sheet pressure.