DeFi Development opens $300M CHAD offering with 13% dividend

DeFi Development Corp. has launched an at-the-market program for up to 30 million CHAD preferred shares, creating a financing channel to support SOL purchases and other corporate uses. CHAD is a variable-rate perpetual preferred stock with a stated amount of 10 dollars, leading to a total aggregate stated amount of 300 million dollars. The cash proceeds will depend on actual issuance volume and market prices. The September 11 prospectus does not set a minimum offering amount and does not guarantee any shares will be sold. DeFi Development is not obligated to issue shares, and the agent can receive up to 0.75% of gross proceeds. CHAD's cumulative dividend starts at 13% per year on the stated amount, equating to 1.3 dollars per share annually, subject to board declaration and available funds. If all 30 million shares were outstanding for a year, they would accumulate 39 million dollars in dividends. The board reviews the annual rate monthly, with any reductions limited to 50 basis points. A portion of net proceeds will be used to acquire SOL, while working capital and strategic initiatives are also permitted. As of September 11, the company reported 2,388,923 SOL and equivalents, an increase of 55,491 from August 27. This program follows a previous CHAD offering that closed on September 8 at 8 dollars per share, generating approximately 11 million dollars gross.

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