Solana Treasury Company DeFi Development authorized CHAD preferred stock repurchase plan

Solana Treasury Company DeFi Development Corp. (DFDV), listed on NASDAQ, announced the approval of an open-ended buyback plan to repurchase all outstanding shares of its CHAD preferred stock, including any shares that may be issued in the future. This plan provides the company with the flexibility to repurchase when the trading price of CHAD is below its par value of $10. The company stated that it does not intend to immediately buy back CHAD but hopes that the preferred stock will stabilize near its par value first.

DeFi Development CEO Joseph Onorati stated that the company's primary goal is simple: to bring CHAD back to par value. He mentioned that this is not an announcement to buy CHAD today, but rather to establish the infrastructure, so that once CHAD stabilizes near par value, if it subsequently falls below par, the company will have an additional tool available. He also stated that the company views CHAD as a long-term financing platform rather than a one-time issuance.

This open-ended authorization adds a potential funding allocation tool to DeFi Development's existing $300 million At-the-Market (ATM) issuance plan for CHAD, which the company previously stated would be used to raise funds for increasing its holdings of SOL. The company paid the first dividend on CHAD on October 1. Additionally, the company stated on Monday that preliminary estimates for the third quarter show that as its Solana treasury increased to 2.56 million SOL over the past week, the net asset value per share has more than doubled compared to before. DFDV's stock price rose 3.3% during Tuesday's trading session.