DeFi Development prices $19.8M CHAD preferred stock offering
What's the deal? DeFi DevelopmentDealroom has a profile for this one. Try Dealroom → has priced a $19.8 million offering of Variable Rate Series C Perpetual Preferred Stock, known as CHAD Stock, according to an updated prospectus filed with the Securities and Exchange Commission. The Solana treasury company is selling 2.2 million shares at $9 each, with R.F. Lafferty & Co.Dealroom has a profile for this one. Try Dealroom → as sole book-running manager.
What are the terms? Each CHAD share carries a $10 stated amount and an initial 13% annual dividend rate, or $1.30 per share. At the $9 offering price, that implies an effective annual yield of roughly 14.44%.
Why now? The pricing updates an August 31 announcement that described a proposed offering of up to $20 million without disclosing the share count or price. R.F. Lafferty holds a 30-day option to buy 330,000 more shares, which would lift gross proceeds to $22.77 million.
What's the endgame? Proceeds may fund Solana purchases, working capital, strategic transactions, and other digital asset investments. The first dividend is scheduled for October 1; thereafter, payments become payable each business day, but only when declared by the board and when funds are legally available.
What could go wrong? The dividend is variable, and the board may adjust the rate at least monthly, though a single monthly reduction is capped at 50 basis points. The company plans to seed a reserve of about $2.86 million to cover a year of payments, but the prospectus warns that account is not an independent guarantee and could remain available to creditors in insolvency.
The signal: Crypto treasury companies are turning to high-yield preferred stock to fund token accumulation without diluting common shareholders. DeFi Development's 13% rate signals both investor appetite for digital asset exposure and the premium such issuers must pay to raise capital.
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