DeFi Development Corp. to Raise $20M via 13% Preferred Stock for SOL Buys

DeFi Development Corp. (DFDV) is conducting an initial public offering of Variable Rate Series C Perpetual Preferred Stock, branded as CHAD Stock, to raise up to $20 million. The offering carries an initial annual dividend rate of 13%, a figure the company states is subject to adjustment under the stock's terms. R.F. Lafferty & Co. is serving as the sole book-running manager for the deal.

The proceeds are earmarked for general corporate purposes, with a specific allocation for the acquisition of Solana (SOL) and other digital asset-related investments. DFDV stated that it intends to use the net proceeds for working capital, strategic transactions, and growth initiatives alongside its crypto holdings. The firm resumed its accumulation of SOL last week, citing more favorable market conditions as the driver for the renewed buying activity.

Under the terms of the offering, dividends will accrue on a stated amount of $10 per share. Payments are scheduled to be made on each business day of the calendar month, with the first payment date set for October 1, 2026. To secure this obligation, DFDV intends to deposit $1.30 per share into a separate account at closing. This reserve is designed to cover 12 months of dividend payments at the initial 13% rate. The company indicated it can fund this reserve using existing cash, financial instruments, and/or digital assets.

DFDV is currently one of the largest public holders of SOL. Last week, the company added 19,000 SOL to its treasury at an average price of $98.14 per token. This purchase increased its total holdings to approximately 2.33 million SOL and SOL equivalents. The firm partially funded this acquisition by divesting its position in ZeroStack, a move it attributed to improving market conditions.

Chief Executive Joseph Onorati positioned DFDV as a leveraged vehicle for investors seeking exposure to SOL. Onorati stated that when SOL performs well, DFDV has the potential to amplify that performance. He noted that month-to-date, DFDV's return has been more than twice that of SOL itself.

The capital raise occurs against a backdrop of strengthening crypto markets. SOL gained 41.4% in August, marking the token's first positive month of 2026 after posting losses in every month since January. Other digital asset treasury firms have also re-entered the market; Strategy resumed Bitcoin (BTC) accumulation following a 10-week pause, while Strive and BitMine continued adding to their digital asset holdings.

The offering represents a test of investor appetite for treasury firms following a difficult period for the sector. The success of this raise will determine how much additional SOL DFDV can acquire in the near term.