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# DeFi Development Corp. Launches CHAD Preferred Stock to Fund More SOL Purchases
- URL: https://www.solanahorizon.com/defi-development-corp-launches-chad-preferred-stock-to-fund-more-sol-purchases/
- Published: 2026-09-08T18:38:11.000Z
- Updated: 2026-09-08T18:38:11.000Z
- Description: The non-convertible preferred stock gives DeFi Development Corp. another way to raise capital for SOL purchases without issuing common shares.
- Author: Bart Hillerich
- Tags: DeFi Development Corp., News, DATs, SOL, Thomas Lee

[DeFi Development Corp.](https://defidevcorp.com/?ref=solanahorizon.com) has closed an $11 million public offering of its Variable Rate Series C Perpetual Preferred Stock, which the Solana treasury company plans to use as a funding instrument to buy additional [SOL](https://www.solanahorizon.com/tag/sol/).

The preferred stock now trades on Nasdaq under the ticker CHAD, and is the first SOL-backed "Digital Credit" instrument. [Thomas Lee](https://x.com/fundstrat?ref=solanahorizon.com), co-founder and head of research at Fundstrat Global Advisors and chair of BitMine's board of directors, participated in the offering, according to the company's [announcement](https://www.globenewswire.com/news-release/2026/09/08/3357679/0/en/defi-development-corp-launches-chad-the-first-sol-backed-digital-credit-instrument-with-participation-from-fundstrat-s-tom-lee.html?ref=solanahorizon.com).

CHAD is a form of digital credit that adapts a capital markets structure used by Bitcoin treasury companies for the Solana market; this structure, however, is changed because of SOL's native staking yield. 

As such, DFDV's treasury strategy includes holding SOL, operating validators, and using onchain treasury strategies to earn returns from its holdings.

Through CHAD, DFDV is raising permanent preferred capital to buy SOL, then seeking to earn yield from those assets while paying dividends on CHAD. A successful offering could make CHAD a recurring source of capital for SOL purchases alongside common equity and other financing instruments.

DFDV issued CHAD at a public offering price of $8 per share and a stated amount of $10 per share. The security has an initial annual dividend rate of 13%. Based on the offering price, the company said that rate equals an initial effective yield of about 16.25%. 

CHAD is perpetual and non-convertible, so it has no fixed maturity date and cannot convert into DFDV common stock. Preferred holders rank ahead of common shareholders for dividends and liquidation proceeds. The lack of conversion rights prevents dilution of common shareholders through CHAD.

Because the issuance does not increase its common share count, management expects the transaction to increase SOL per share after it deploys the proceeds.