DeFi Development Seeks $20 Million Preferred Stock Sale to Fund More Solana Purchases

DeFi Development Corp., a company pursuing a Solana treasury strategy, is launching a preferred stock offering to fund additional purchases of Solana.

Crypto-focused media outlet The Block reported on August 31 that the Nasdaq-listed company has proposed an offering of up to $20 million of floating-rate Series C perpetual preferred stock. The shares will be issued at $10 each. The dividend rate will start at 13% annually and then float. The first regular dividend payment is scheduled for October 1.

At the close of the offering, the company plans to set aside a dividend reserve equal to the first 12 months of dividends at the initial 13% rate. The reserve will be held in cash, financial instruments or digital assets. The proceeds will be used for general corporate purposes, including additional Solana purchases and other digital-asset investments.

DeFi Development said last week that it had resumed buying Solana, acquiring about 19,000 SOL at an average price of $98.14. That increased its total holdings to about 2.33 million SOL. Chief Executive Officer Joseph Onorati said last week that DFDV was designed to give investors leveraged exposure to Solana. Recent trading activity shows investors are increasingly recognizing that value proposition, he added.

Shares of DeFi Development rose 8.03% to close at $5.38 on the day the offering was announced. The stock has gained 110% over the past month, though it is little changed for the year.

Solana traded at $103.3, up 1.9% over the past 24 hours that day.