DeFi Development Corp The company disclosed that it has newly purchased 55,491 SOL, which is valued at approximately $5.78 million according to the text, increasing its SOL treasury to about 2,388,923 SOL and equivalent assets. The company also launched a $300 million CHAD preferred stock issuance plan at market price, with the funds raised mainly intended for continuing to purchase SOL.
SOL Holdings increased by about 2% compared to August 27th
The company, which is listed on NASDAQ with the stock code DFDV, stated that its latest holdings have increased by about 2% from approximately 2.33 million SOL on August 27th. The company positions itself as a U.S.-listed firm that operates around a Solana accumulation strategy and manages its own validator infrastructure to generate staking earnings.
CHAD is a newly established preferred stock tool.
The announcement indicates that CHAD is a newly established variable-rate Class C perpetual preferred stock of the company, with the stock code being CHAD. The company states that this instrument allows for financing without increasing the number of outstanding common shares, and therefore will not directly dilute the holdings of common shareholders.
The company's CEO, Joseph Onorati, linked this arrangement to the company's "flywheel of accumulation," which involves purchasing SOL through financing, generating profits, and then continuing to expand. According to him, the company plans to proceed with the issuance at a par value of $10 per share or higher.
Just completed the first round of fundraising a week ago.
CHAD has not been online for a long time. The company completed its first issuance on September 8th, raising approximately 11 million US dollars. Among the participants was Tom Lee from Fundstrat. Earlier on, on September 1st, the company set a target of 20 million US dollars for this preferred stock and proposed a price of 9 US dollars per share in the preliminary prospectus. However, the final pricing was adjusted to 8 US dollars per share, and the amount of funds raised was also reduced to 11 million US dollars.
During the same period, the company also disclosed a purchase of 19,000 SOL. Some of the funds for this purchase came from the sale of its holdings of ZeroStack. After that transaction, the company's SOL treasury rose to approximately 2.33 million, laying the foundation for this latest update.
The purpose of the funds is to continue increasing holdings in SOL.
The company stated that the net funds raised from the CHAD issuance at market price will be mainly used to continue purchasing SOL. This is in line with the purpose of its first CHAD financing completed on September 8th, indicating that the company is still focusing on expanding its SOL treasury through capital market operations.
Additional information:An issue plan at market price usually allows a company to sell securities in batches when market conditions are favorable, rather than completing the entire financing in one go.
