Solana treasury firm DeFi Development Corp. has authorized a program to repurchase up to all outstanding CHAD preferred shares, but says it does not currently plan to buy them. The move gives the company another capital-allocation tool as it works to establish CHAD around its $10 stated value.
Solana Treasury Firm Sets CHAD Buyback Conditions Below $10
DeFi Development Corp. said its board authorized repurchases covering all CHAD shares outstanding, including shares issued in the future. The authorization does not require the company to purchase any shares. Instead, it allows repurchases through open-market or privately negotiated transactions if management later considers them an attractive use of capital.
The company said it will not begin repurchases before CHAD first reaches its $10 par value. If the preferred shares subsequently trade below that level, DeFi Development may use the authorization opportunistically. CEO Joseph Onorati said, “Our first objective is simple: get CHAD to par,” making clear that the announcement is about future flexibility rather than an immediate buyback.
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Solana Treasury Reaches 2.56M SOL as CHAD Program Takes Shape
The timing is significant because DeFi Development has continued expanding its Solana treasury. In an October 5 filing, the company said it had added about 26,203 SOL since September 28, bringing its holdings to approximately 2,564,212 SOL and SOL equivalents worth about $302 million. That is higher than the roughly 2.53 million SOL figure cited in the initial announcement.
The company also said its SOL treasury had grown about 11% since its August 12 earnings update. Its strategy is built around holding and staking SOL while operating validator infrastructure that generates staking rewards and fees. This makes the relationship between SOL prices, treasury value and CHAD’s income structure important for investors evaluating the preferred security.
Solana Treasury Supports CHAD’s 13% Dividend Structure
CHAD began paying its first dividend on October 1, according to DeFi Development’s latest filing. The preferred stock currently carries a 13% annual dividend rate on its $10 stated amount, equivalent to $1.30 per share annually at the current rate. The company says dividends are paid each business day when declared.
The structure is designed to connect preferred-stock financing with a productive SOL treasury. DeFi Development says staking and validator operations generate recurring rewards and fees that can support dividend obligations. For CHAD holders, however, the distinction between a 13% stated dividend rate and the security’s market price remains important because the shares can trade below or above par.
Solana Price Holds Near $120 as DFDV Expands Capital Strategy
SOL was trading around $120.40 on October 6, with a market capitalization near $71 billion and 24-hour trading volume around $2.5 billion, according to CoinGecko. The token was up about 1.9% over seven days, while its October 5 close was $120.76. The relatively stable price provides a backdrop for DeFi Development’s continued accumulation rather than evidence that the CHAD announcement itself moved SOL.
The next test is whether CHAD can establish itself at par and develop enough liquidity to become a repeatable funding source. DeFi Development previously said CHAD was intended to provide capital for additional SOL purchases without issuing common shares. The new repurchase authorization adds flexibility on the other side of that strategy, but its financial impact will depend on future CHAD pricing, SOL performance and the company’s decision to actually deploy the authorization.
Also Read: Solana Price Sets Its Sights on $124 as Tokenized-Equity Holders Reach 1.2M
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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