DeFi Development Corp. (NASDAQ: DFDV) has announced a public offering of up to $65 million of 10.00% Series C Cumulative Perpetual Preferred Stock, registered under the Securities Act and slated for listing on Nasdaq under the symbol "CHAD." The preferred shares carry a 10% annual dividend that will be paid quarterly beginning December 31, 2025, and are cumulative and perpetual, allowing the company to raise capital without immediate dilution of common equity.
The proceeds will be used for general corporate purposes, with a primary focus on acquiring additional Solana (SOL) tokens and supporting the company’s validator and liquid‑staking operations. This move follows an earlier $125 million equity raise in August 2025 and reflects DFDV’s strategy to build a treasury of SOL, generate staking rewards, and compound gains through its validator infrastructure.
The Series C shares are convertible into common stock under specified circumstances and can be redeemed by the company under defined conditions. While the exact conversion ratio and redemption price are not disclosed, the terms provide flexibility for future equity dilution and potential upside for investors if the company’s common shares appreciate.
Management emphasized that the preferred‑stock structure allows DFDV to scale its Solana accumulation strategy without immediate share dilution. CEO Joseph Onorati stated, "This model allows us to scale globally and support SOL accumulation without taking on any share dilution," underscoring the company’s intent to maintain control while raising necessary capital.
The 10% dividend represents a significant recurring expense that will increase the company’s financial costs. However, the capital raised is expected to accelerate the accumulation of SOL, which is central to DFDV’s business model and could generate substantial returns if the Solana ecosystem continues to grow. The preferred‑stock offering also introduces a potential future dilution path, as the shares are convertible into common stock, and the company retains the right to redeem them, which could affect the capital structure over time.
The filing of a registration statement earlier in the week had raised concerns among investors about potential dilution and capital structure changes, prompting a cautious market reaction. The new offering is positioned to address those concerns by providing a clear financing mechanism that preserves existing shareholders’ ownership while funding the company’s strategic initiatives.
Overall, the Series C preferred stock offering is a key step in DeFi Development Corp.’s plan to expand its Solana treasury, support validator operations, and maintain flexibility in its capital structure. Investors should monitor how the dividend expense and potential dilution impact the company’s financial health and future earnings potential.
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