DeFi Development Corp. plans to raise up to $20 million through a preferred stock offering. It carries an initial annual dividend rate of 13%.

The Solana (SOL) treasury company intends to use part of the proceeds to buy more SOL. It resumed accumulation last week as market conditions turned more favorable.

What the Preferred Stock Offers

DFDV announced that it plans to conduct an IPO of its Variable Rate Series C Perpetual Preferred Stock, known as CHAD Stock.

Dividends will accrue on a stated amount of $10 per share. Payments will be made each business day of each calendar month, beginning October 1, 2026.

The initial annual dividend rate is 13%, subject to adjustment under the stock’s terms. DFDV also intends to deposit $1.30 per share into a separate account at closing.

The reserve would cover 12 months of dividend payments at the initial 13% rate. The company can fund it with existing cash, financial instruments, and/or digital assets. R.F. Lafferty & Co. is acting as the sole book-running manager.

“The Company intends to use the net proceeds from the offering for general corporate purposes, including for working capital, the acquisition of SOL and other digital asset-related investments, strategic transactions and growth initiatives,” the firm said.

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Buying Restarted Days Before the Offering

The firm is already one of the largest public holders of SOL. Last week, it added 19,000 SOL at an average price of $98.14.

That purchase lifted its treasury to about 2.33 million SOL and SOL equivalents. The company partly funded the acquisition by divesting its ZeroStack position, citing improving market conditions.

Chief Executive Joseph Onorati described DFDV as a leveraged way for investors to gain exposure to SOL.

“When SOL performs well, we believe DFDV has the potential to amplify that performance. Month-to-date, DFDV’s return has been more than twice that of SOL,” he said.

The move comes as the broader crypto market strengthens. SOL gained 41.4% in August, making it the token’s first positive month of 2026 after losses in every month since January.

Strategy also resumed Bitcoin (BTC) accumulation after a 10-week pause, while Strive and BitMine continued adding to their digital asset holdings.

For now, the raise shows treasury firms testing investor appetite again after a difficult stretch. Whether that window stays open will shape how much more SOL DFDV can add.

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Source: BeInCrypto