Jack Paul 
DeFi Development Corp. has priced its Variable Rate Series C Perpetual Preferred Stock at $9 per share. The company, often described as a Solana treasury firm, plans to sell 2.2 million shares. That would bring about $19.8 million before underwriter fees and other costs.
CHAD is the ticker for the preferred stock. The offering updates an earlier plan from Aug. 31, which mentioned up to $20 million but did not give a share count or final price. R.F. Lafferty & Co. is managing the sale. The underwriter also has a 30-day option to buy another 330,000 shares, which could push the total to $22.77 million.
A 13% dividend with a catch
Each CHAD share has a stated amount of $10, but investors pay $9. The initial dividend rate is 13%, based on the $10 stated amount. That comes to $1.30 per share per year if the rate stays the same. At the $9 offering price, the effective yield works out to about 14.44%.
Here’s the catch: the dividend is variable. DeFi Development’s board can review the rate at least monthly and change it based on interest rates, the stock’s price, comparable yields, and the company’s liquidity needs. The rate can go down, though monthly reductions are capped at 50 basis points from the prior month. The filing warns that management could eventually set it below what other securities pay.
The first dividend is due Oct. 1 and covers the period from issuance through Sept. 30. After that, dividends are payable on each business day, but only when the board declares them and funds are legally available.
A reserve for the first year, but no guarantee
DeFi Development says it will put $1.30 per issued share into a separate dividend account at closing. For 2.2 million shares, that means roughly $2.86 million, covering 12 months at the initial rate. The company plans to fund it with cash, financial instruments, or digital assets, not just offering proceeds.
The reserve is not a hard guarantee. The company is not required to add to it if the dividend rises above 13% or if more CHAD shares are sold. Also, the money in the account could be available to creditors in a bankruptcy. CHAD has no maturity date, limited voting rights, and ranks below existing and future debt. DeFi Development can redeem the shares at $11 each, plus unpaid dividends, after a Nasdaq listing.
Solana purchases remain possible, not certain
DeFi Development says it may use proceeds for general corporate purposes, including buying Solana, other digital assets, acquisitions, or working capital. No specific amount is set aside for SOL. The company recently bought about 19,000 SOL at an average price of $98.14, lifting its treasury to around 2.33 million SOL and SOL-equivalent assets.
The SEC filing warns that SOL purchases would still face price volatility. Management has wide discretion, so the actual use could shift. Investors shouldn’t assume the full $19.8 million will become a Solana buy.
CHAD is expected to trade on Nasdaq under the same ticker, but that listing is still pending. The company is also planning an at-the-market stock sale program after listing, though terms are not final. DFDV closed at about $5.38 on Aug. 31, up 7.8%, but that move came before the CHAD announcement after hours. The next real test will come when markets reopen and the offering closes. The first dividend payment lands Oct. 1.