DeFi Development Corp. completed an $11 million public offering of Series C perpetual preferred stock, known internally as “CHAD stock,” to expand its corporate Solana (SOL) treasury reserves. The offering yielded approximately $10.3 million in net proceeds. The Nasdaq-listed company plans to deploy substantially all funds to purchase additional SOL tokens, seeking to increase its overall crypto holdings without diluting common share equity.
Solana treasury firm DeFi Development Corp. completed an $11 million capital raise through a specialized preferred stock offering aimed directly at growing its digital asset holdings.
The Nasdaq-listed corporation closed its offering of Series C floating-rate perpetual preferred stock internally designated as “CHAD” stock on September 8, 2026. The transaction generated approximately $10.3 million in net proceeds after accounting for underwriting discounts and offering expenses. Executive leadership confirmed that the net capital will be deployed primarily into direct spot purchases of Solana (SOL) tokens.
The financial structure utilized by DeFi Development offers a novel approach to corporate treasury expansion within the digital asset sector. By issuing preferred shares rather than issuing common stock, the company secures capital to purchase crypto assets without diluting the voting power or equity ownership of existing common shareholders.
Key details of the capital raise include:
- Issuance Pricing: The offering comprised 1.375 million preferred shares priced at $8 per share, carrying a stated par value of $10 per share.
- Dividend Parameters: The preferred shares feature an initial annual dividend rate of 13%, translating to an effective initial yield of roughly 16.25%. The inaugural regular dividend distribution is scheduled for October 1, 2026.
- Underwriter Option: The company granted underwriters a 30-day option to purchase up to an additional 206,250 shares to accommodate potential over-allotments.
- Capital Allocation: Substantially all net proceeds are slated for immediate spot purchases of SOL tokens to increase the company’s “SOL per share” metric.
The capital offering attracted institutional participation, including a subscription from Fundstrat research head Tom Lee. Chief Executive Officer Joseph Onorati stated that the preferred stock structure establishes a permanent capital pipeline designed to continually support corporate digital asset accumulation.
DeFi Development Corp. operates a corporate strategy centered around holding and managing large reserves of Solana. Similar to corporate treasury strategies pioneered with Bitcoin, the company accumulates SOL as a primary reserve asset. However, unlike passive Bitcoin reserves, corporate SOL holdings can participate in native network operations, generating additional yield through validator nodes and staking mechanisms.
Prior to the completion of the CHAD offering, the company recently resumed token acquisitions, adding approximately 19,000 tokens to its balance sheet. That purchase brought its aggregate reserves to roughly 2.33 million SOL, comprising native tokens and yield-generating SOL-equivalent assets.
The completion of the $11 million preferred share sale highlights ongoing corporate interest in alternative financing models designed for digital asset accumulation. As DeFi Development continues to execute its treasury strategy, market observers will monitor whether additional digital asset management firms adopt similar preferred stock structures to build balance sheet reserves.
