DeFi Development Adds 22,000 SOL as CHAD Preferred Stock Hits Record High

SOL treasury company boosts holdings amid crypto selloff

Nasdaq-listed DeFi Development Corp. (DFDV) reported on October 12 that its Solana (SOL) holdings grew to roughly 2.59 million tokens, up 12% since the company's August 12 earnings report. The company added approximately 22,070 SOL and SOL equivalents during the week ended October 9, even as broader crypto markets saw a selloff.

At the same time, DFDV's Nasdaq-listed variable-rate perpetual preferred stock, known as CHAD, reached record trading highs during that same week. CHAD carries a 13% annual dividend rate, payable when declared by the company.

DFDV shares themselves fell about 21% over the past week and dropped another 2.2% during Monday's trading session.

Key numbers at a glance

• Total SOL holdings: approximately 2.59 million SOL
• SOL added in the past week: about 22,070 SOL and SOL equivalents
• Percentage increase since Aug. 12: 12%
• CHAD annual dividend rate: 13% (payable when declared)
• DFDV share decline over the past week: approximately 21%

CEO speaks on volatility and Solana's role in finance

CEO Joseph Onorati told reporters in a release that short-term market moves have not altered the company's commitment to accumulating SOL. He pointed to tokenized equities — digital versions of traditional stocks — generating billions of dollars in trading activity on the Solana blockchain, which is a platform for building and running applications and storing digital assets.

Onorati specifically referenced Samsung's announcement of bringing stablecoin functionality to 82 million U.S. Galaxy devices. Stablecoins are digital assets designed to hold a stable value, often pegged to the U.S. dollar. He said these developments point toward a larger role for Solana in global finance and that the company intends to keep accumulating.

CHAD preferred stock and the repurchase program

Chief Strategy Officer Dan Kang noted that CHAD approaching its $10 par value while SOL pulled back is a sign that investors recognize the stock's income-focused structure. He said CHAD was created to meet demand for income backed by a productive SOL treasury, and that its recent trading behavior shows it can move independently of SOL's price.

Last week, DeFi Development authorized a program to repurchase up to all outstanding CHAD shares. The program gives the company flexibility to buy back the securities if they trade below their $10 par value.

Reported by

• The Block