DeFi Development Raises $11M to Expand Solana Treasury

DeFi Development Corp., a Nasdaq-listed firm, has raised approximately $11 million through the sale of 1.375 million shares of Variable Rate Series C Perpetual Preferred Stock, or CHAD Stock, priced at $8 per share. The underwriter retains the right to purchase an additional 206,250 shares at the same price within 30 days. The offering is scheduled to conclude on September 8, pending approval.

The funds will be utilized for general corporate purposes, including investments in Solana (CRYPTO: $SOL), other digital assets, strategic transactions, and growth initiatives.

CHAD Stock features a variable cumulative dividend based on a $10 stated amount per share, with the company aiming to maintain the stock price between $9.95 and $11 over the long term. The dividend rate will not be reduced by more than 50 basis points during a regular payment period. The inaugural dividend payment is set for October 1, with a reserve of $1.30 per share allocated to cover the first year of dividend payments, assuming a 13% annual rate.

Earlier this month, DeFi Development introduced State of Solana, a public dashboard providing investors with real-time data on Solana's network, encompassing activity, staking, validators, transaction throughput, and ecosystem trends. In May, the company launched a $200 million at-the-market equity program to facilitate additional Solana acquisitions, working capital, and strategic initiatives. Solana currently trades at $101.27, remaining relatively stable in the past day but up around 37% over the past month.