DeFi Development Corp. (NASDAQ: DFDV) announced it will raise the annual dividend rate on its CHAD Variable Rate Series C Perpetual Preferred Stock from 13% to 14%, effective November 2. The change increases stated annual dividends to $1.40 per share on the security’s $10 stated amount, up from $1.30 previously, a 100-basis-point increase representing about 7.7% more annual income per share.
The company framed the higher payout as part of a broader Solana treasury strategy. CEO Joseph Onorati said DeFi Development wants to expand investor participation in CHAD and scale the instrument while increasing its capacity to accumulate SOL. The company said staking, validator operations and other treasury strategies generate returns that support payments, and proceeds from future CHAD issuance are intended to fund additional SOL purchases and growth in SOL per common share.
CHAD was launched roughly five weeks before the announcement. The company sold 1.375 million shares at $8 each on September 8, raising about $11 million; at that issuance price the effective yield was closer to 16.25 percent. DeFi Development has a $300 million program to sell CHAD shares over time. As of mid-October, the firm reported its treasury held about 2.59 million SOL, roughly 12% more than at its August 12 earnings update.
The announcement also described risks: dividends are cumulative but payable only when and if declared by the board, CHAD’s rate is variable, it can trade below its $10 stated amount, and staking or validator rewards may not be sufficient to support payments. On October 6, the board approved a buyback program for CHAD below $10, though management said it has no immediate plans to repurchase shares and wants the stock to trade at or near its stated amount first.
The company highlighted comparisons to Strategy’s digital credit approach; Strategy adopted a Digital Credit Capital Framework on June 29 and its variable-rate preferred, STRC, carries a 12% rate. DeFi Development’s common stock was recently near $4.32, with a market value around $141 million, while CHAD climbed toward its $10 stated amount even as SOL pulled back.
