DeFi Development Corp., a Nasdaq-listed digital asset investment firm, has authorized an open-ended plan to repurchase all outstanding and future CHAD preferred shares. The company, which focuses on blockchain-based investments, said it may use this buyback authority if CHAD trades below its $10 par value, but currently has no immediate plans to initiate any purchases.
Open-ended buyback authorization for CHAD
Chief Executive Joseph Onorati emphasized that management’s main objective is for the CHAD security to stabilize at its $10 par value before considering any buybacks. The company views the authorization as a strategic capital allocation tool that can be deployed if market conditions warrant.
This move comes amid strong growth in decentralized exchange volume across the Solana blockchain, further spotlighting the role of Solana in DeFi environments.
Management aims to support CHAD’s establishment around its $10 par value, keeping the buyback authority ready as a future option if the preferred shares dip below that level.
The buyback authorization is separate from DeFi Development’s existing $300 million at-the-market CHAD program, which is designed to raise capital by selling CHAD shares. The company has reiterated that proceeds from CHAD sales will continue being used to expand its Solana (SOL) treasury position. On October 1, DeFi Development paid the first dividend to CHAD holders, marking a significant milestone in the launch of this preferred equity instrument.
The stated purpose for issuing CHAD remains unchanged: to generate funds for additional Solana acquisitions. The buyback program does not impact the ongoing strategy of using CHAD proceeds to further accumulate SOL.
Solana treasury expansion and financial update
DeFi Development reported preliminary third-quarter results indicating a considerable increase in its Solana treasury. Over the past week, the company’s SOL holdings reached approximately 2.56 million, while net asset value per share more than doubled. The company revealed that its approach involves tying capital-raising activities associated with CHAD directly to ongoing Solana reserve expansion.
Management regards CHAD as a long-term capital source rather than a single fundraising event. The flexible structure of the buyback program allows leadership to react to future market pricing and CHAD’s position relative to par value.
Mini dictionary: Preferred shares are a special type of equity security that receive priority for dividends and have a fixed par value, but usually carry no voting rights. They are often structured to appeal to institutional or long-term investors seeking stable returns alongside exposure to company performance.
| Metric | Previous Week | Current Week |
|---|---|---|
| Solana Treasury Holdings (SOL) | ~2.53 million | ~2.56 million |
| Net Asset Value Per Share | – | More than doubled |
| CHAD Par Value | $10 | |
Share price reacts to treasury disclosure
During Tuesday’s trading session, DeFi Development (DFDV) shares advanced by about 3.3%. This gain came after the company released its preliminary third-quarter update and reported growth in Solana holdings.
DeFi Development belongs to the small group of publicly traded companies that use crypto assets, such as Solana, as significant components of their treasuries. The ongoing expansion of Solana’s institutional settlement network is also drawing renewed attention to digital asset treasury strategies.
The CHAD repurchase framework offers an additional method for the company to manage its preferred equity. Investors are closely monitoring CHAD’s trading levels relative to the $10 par value and whether DeFi Development will eventually use the authority for buybacks. The open-ended nature of the authorization means it covers both existing and future CHAD shares without a set timeframe.
