Solana treasury DeFi Development authorizes CHAD preferred stock buyback program

Nasdaq-listed DeFi Development Corp. authorized a program to repurchase up to all outstanding shares of its CHAD preferred stock, including shares it may issue in the future. This gives the company flexibility to buy back the securities if they trade below their $10 par value.

The Solana treasury company does not currently intend to repurchase CHAD and first wants the security to establish itself at or around par, according to the press release.

"Our first objective is simple: get CHAD to par," CEO Joseph Onorati said. "We are not announcing that we intend to buy CHAD today. We are putting the infrastructure in place so that, once CHAD has established itself at par, we have another tool available if it subsequently trades below par."

The open-ended authorization adds a potential capital-allocation tool to DeFi Development's (DFDV) existing $300 million CHAD ATM, which the company has said it intends to use to raise capital for additional SOL purchases. The firm paid CHAD's first dividend on Oct. 1.

"We think about CHAD as a long-term funding platform, not a one-time issuance," Onorati said. "This authorization reflects that."

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On Monday, DeFi Development Corp. said preliminary third-quarter estimates show NAV per share more than doubled as its Solana treasury grew to 2.56 million SOL over the past week.

DFDV shares traded higher by 3.3% in Tuesday's session.