⏱ 3 min read
Purchases slowed while the firm leans on a $300 million CHAD ATM; the preferred pays 13% on a $10 stated amount and hit record highs.
DeFi Development Corp added about 22,070 SOL and SOL equivalents last week, taking its treasury to roughly 2,586,282 tokens worth about $287 million with SOL near $111, the report says. Its CHAD preferred stock hit record highs in the week ended October 9 and is approaching $10 after a September IPO priced at $8, according to the report.
CHAD price ties to SOL buying power
The report says the company disclosed in a press release that the latest purchase was worth about $2,373,211. Weekly additions have been stepping down: 101,381 SOL in mid-September (around $11.4 million), then 47,706 ($5.8 million) and 26,202 ($3.1 million), before last week’s 22,070. Put another way, 22,070 against 101,381 is about 22%, a drop of roughly 78% since mid-September.
The price of CHAD matters because, per the report, DeFi Development funds its SOL purchases through a $300 million at-the-market program that sells new CHAD shares gradually at market prices. The closer CHAD trades to its $10 stated amount, the more SOL each new share buys.
“CHAD reaching new highs and approaching $10.00 even as SOL pulled back is an encouraging sign that investors are recognizing its distinct income proposition,” Chief Strategy Officer Dan Kang said in the release, per the report. “For common shareholders, CHAD provides a funding source that can support accretive SOL per share growth without issuing additional common shares. For CHAD holders, it offers daily income supported by that growing, productive treasury,” he added.
The report adds that CHAD is a perpetual preferred that pays a variable 13% a year on its $10 stated amount, or $1.30 per share, with dividends declared each business day. The company last week authorized buybacks when CHAD trades under its $10 par value, the report says.
▼ 2.47%
Prices as of 2026-10-12 21:02 UTC. Source: CoinGecko.
Valuation gap and payout risks
According to the report, DeFi Development’s common stock traded near $4.41 on Monday, implying a market value of about $140 million against roughly $287 million worth of SOL, or about 0.49 times. The report argues that when a treasury company trades below its crypto stash, selling shares to buy tokens stops making sense.
The release itself warns that staking rewards may not be enough to cover CHAD’s dividends, the report says. It also notes the firm’s main asset trades about 62% below its January 2025 peak of roughly $295.
The report says SOL fell about 9% over seven days as nearly $1 billion in long positions were liquidated in 24 hours. Liquidations close leveraged positions when collateral is insufficient, which can push prices lower by forcing sales.
“Short-term volatility has not changed our conviction or our commitment to accumulating SOL,” CEO Joseph Onorati said in the release, per the report. CHAD holders will keep collecting $0.00516 per share for each business day through October 30, and the next macro test arrives Wednesday with the U.S. September inflation report, the report adds.
Source: Decrypt.
This article was written with AI assistance and reviewed by an editor.
This content is for informational purposes only and does not constitute financial advice.
🧠 HafidWatch Take
The reported decline in weekly additions to the at-the-market program suggests a slowdown in DeFi Development’s ability to acquire SOL through share sales. Without clear data on preferred share issuance, the proceeds raised, or any buybacks occurring below par, it remains uncertain how these factors are influencing the company’s token accumulation strategy. This lack of transparency could impact investors’ understanding of how the valuation gap might evolve if share-based purchases of SOL continue to diminish.
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