Solana treasury giant DeFi Development opens $300M CHAD offering backed by a massive 13% dividend catch

Solana treasury company DeFi Development Corp. has opened an at-the-market program for up to 30 million CHAD preferred shares, creating an optional financing channel that could support further SOL purchases alongside other corporate uses.

CHAD is variable-rate perpetual preferred stock. Its $10 stated amount is the base used to calculate dividends; the security's market price and eventual sale prices can differ. Multiplying that stated amount by the program's 30 million-share limit gives $300 million of aggregate stated amount. Cash proceeds will depend on actual issuance volume and market prices.

The September 11 prospectus sets no minimum offering amount and gives no assurance that any or all shares will be sold. DeFi Development is not obligated to issue shares, while R.F. Lafferty is not required to sell a specific number or dollar amount. The agent can receive up to 0.75% of gross proceeds, and the company must cover specified offering expenses.

The larger continuing cost comes from CHAD's cumulative dividend. Regular dividends initially accrue at 13% a year on the $10 stated amount, equivalent to $1.30 per share annually. Cash payment remains subject to board declaration and legally available funds.

If all 30 million ATM shares were outstanding for a full year and the initial rate did not change, they would accumulate $39 million in dividends on an annualized basis. The scenario assumes full issuance for a full year at an unchanged rate; actual accumulation will vary with the number and timing of sales and subsequent rate decisions.

The board determines the regular annual rate at least monthly. Any monthly reduction is limited to 50 basis points and subject to timing, prior-dividend and market-price conditions. The 13% figure applies initially, and later rates can change.

DeFi Development Corp. says a portion of net proceeds will acquire SOL. Working capital and strategic initiatives are also permitted uses, leaving management broad discretion and no fixed allocation to the token.

The company reported 2,388,923 SOL and SOL equivalents as of September 11, up 55,491 from August 27. It attributed the increase to purchases and organic treasury growth without splitting the two. Separately, establishing the ATM created future financing capacity. The disclosed causes of the treasury increase do not include ATM proceeds.

The program follows a separate CHAD offering that closed September 8 at $8 per share and generated approximately $11 million gross. It also adds a preferred-share route alongside the common-share financing and cost reductions CryptoSlate covered in August.

The new ATM currently represents optional financing capacity. Its eventual economics will depend on issuance volume and price, the dividend rate over time and management's allocation of proceeds.