DeFi Development Corp., a publicly traded company focused on accumulating Solana (SOL), announced Thursday that it is increasing the annual dividend rate on its CHAD preferred stock from 13% to 14%.
The 100 basis point increase will take effect on November 2, raising annual dividend payments from $1.30 to $1.40 per share based on CHAD’s $10 stated value. This represents a 7.7% increase in annual dividend income per share.
CHAD, which trades on Nasdaq, is designed to provide investors with recurring income through cumulative dividends payable each business day, subject to approval by the company’s board of directors.
DeFi Development expands its Solana treasury strategy
Launched in September, CHAD is a variable rate perpetual preferred stock that allows DeFi Development to raise capital for additional SOL purchases while offering investors regular dividend payments.
Unlike common shares, CHAD prioritizes dividend income rather than direct participation in the company’s stock price appreciation. Its dividend rate can also change based on market conditions and the company’s financing strategy.
At a purchase price of $10 per share, the new rate represents a 14% annualized dividend yield. However, the actual yield depends on the purchase price and whether the company maintains its dividend payments.
“Increasing the rate to 14% strengthens that proposition as we broaden investor participation and scale CHAD,” said Joseph Onorati, CEO of DeFi Development Corp.
The company generates returns from its SOL holdings through staking, validator operations and other treasury strategies. These activities provide a source of revenue that can help support its dividend obligations.
Additionally, DeFi Development established a $300 million share issuance program for CHAD in September, with proceeds intended primarily to finance further SOL accumulation.
Solana holdings approach 2.6 million SOL
The dividend increase comes as DeFi Development continues expanding its Solana treasury despite volatility across crypto markets.
On Monday, the company reported that its holdings had reached approximately 2.59 million SOL and SOL equivalents after adding around 22,070 SOL over the previous week.
That represents a 12% increase in treasury holdings since its August earnings report.
Meanwhile, CHAD reached record trading highs during the week ending October 9, even as the company’s common shares came under pressure alongside the broader crypto market.
The company also authorized a CHAD repurchase program earlier this month, allowing it to buy back preferred shares if market conditions warrant. However, management said it had no immediate plans to begin repurchases.
The strategy reflects a broader trend among publicly traded crypto treasury companies seeking alternative financing structures to accumulate digital assets.
Unlike Bitcoin treasury companies, DeFi Development can generate native staking rewards from its SOL holdings. However, its ability to maintain dividend payments remains exposed to Solana price volatility, operating performance and future financing conditions.
Disclosure: This article was edited by John Chen. For more information on how we create and review content, see our Editorial Policy.