DeFi Development Corp., a Nasdaq-listed company, has authorized a buyback program for its CHAD preferred stock, giving the company the ability to repurchase all outstanding CHAD shares as well as any shares that may be issued in the future. The authorization allows the company to act when CHAD trades below its $10 per-share par value. Still, the Solana treasury company said it does not currently plan to repurchase CHAD and wants the security to first develop market liquidity and trade at or near its $10 par value. The open-ended authorization adds another potential capital allocation tool alongside DeFi Development’s existing $300 million CHAD at-the-market, or ATM, issuance program. The company has previously said it intends to raise funds through that program to buy more SOL. DeFi Development also paid CHAD’s first dividend on Oct. 1.
DeFi Development Corp., a Nasdaq-listed company, has authorized a buyback program for its CHAD preferred stock, according to BlockBeats on Oct. 6.
Under the authorization, the company may repurchase all outstanding CHAD preferred shares, including any shares it may issue in the future. The program gives the company flexibility to buy back CHAD if the security trades below its $10 per-share par value.
The Solana treasury company said it does not currently plan to repurchase CHAD. Instead, it wants the security to first build liquidity in the market and stabilize at or near its $10 par value.
The open-ended authorization adds a potential capital allocation tool to DeFi Development’s existing $300 million CHAD at-the-market, or ATM, issuance program. The company previously said it plans to raise funds through that program for additional SOL purchases.
DeFi Development paid CHAD’s first dividend on Oct. 1.
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