Solana treasury firm DeFi Development Corp. has closed and launched its preferred stock offering, marking the launch of what it calls the first SOL-backed "Digital Credit" instrument.
CHAD carries a 13% initial annual dividend rate and will fund additional SOL purchases, giving the Nasdaq-listed DeFi Development Corp. another way to grow its SOL holdings without issuing common shares. The offering, which closed at $11 million, included participation from Fundstrat's Tom Lee.
CHAD is a Variable Rate Series C perpetual preferred stock, with an initial annual dividend rate of 13%, equivalent to an initial effective yield of approximately 16.25% based on the offering price. The first regular dividend payment is set to occur on Oct. 1.
"CHAD represents a major milestone for DFDV and for the evolution of Digital Credit," said DeFi Development CEO Joseph Onorati. "For the first time, investors can access Digital Credit backed by Solana, while DFDV gains a new source of permanent capital that can be deployed directly into additional productive SOL."
DeFi Development Corp. recently resumed Solana purchases, acquiring roughly 19,000 SOL to bring its holdings to approximately 2.33 million SOL and SOL equivalents.
