DeFi Development Corp. (Nasdaq: DFDV) has authorized an open-ended program to repurchase its Variable Rate Series C Perpetual Preferred Stock, known as CHAD. The board approved the measure on October 6, 2026, covering all current and future shares. The company intends to execute buybacks only when the market price falls below the $10 par value.
CEO Joseph Onorati stated that the company has no immediate plans to initiate repurchases. The current priority is to stabilize the stock price near its $10 par value. The company launched CHAD on September 8, 2026, issuing 1.375 million shares at $8 each, which generated approximately $11 million in proceeds.
The preferred stock carries an initial annual dividend rate of 13%, resulting in an effective yield of approximately 16.25% based on the initial offering price. The dividend rate is variable and subject to change. DFDV continues to operate a separate $300 million at-the-market program to issue additional CHAD shares.
The company uses proceeds from CHAD sales primarily to acquire SOL tokens. As of mid-September 2026, DFDV held approximately 2.39 million SOL and equivalents. This strategy aims to accumulate assets without diluting common shareholders, though it requires the company to maintain ongoing dividend payments regardless of token price volatility.
