DeFi Development grows SOL holdings 12% to 2.59 million as CHAD hits record highs

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DeFi Development grows SOL holdings 12% to 2.59 million as CHAD hits record highs
PrimeXBT Editorial Team
Reviewed by PrimeXBT

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DeFi Development Corp. added approximately 22,070 SOL and SOL equivalents over the past week, lifting its holdings 12% since its August earnings report. Its CHAD preferred stock hit record trading highs while DFDV shares fell about 21% in the same week.

Nasdaq-listed DeFi Development Corp. added approximately 22,070 SOL and SOL equivalents over the past week. The purchases bring its total holdings to roughly 2.59 million SOL. That is up 12% since its Aug. 12 earnings report, the company announced Monday.

CHAD reaches record highs despite the selloff

The Solana treasury company also said its Nasdaq-listed variable-rate perpetual preferred stock, CHAD, reached record trading highs during the week ended Oct. 9, despite a broader crypto market selloff. CHAD currently carries a 13% annual dividend rate, payable when declared.

Last week, DeFi Development authorized a program to repurchase up to all outstanding shares of CHAD. That gives the company flexibility to buy back the securities if they trade below their $10 par value.

Chief Strategy Officer Dan Kang said CHAD's move toward $10.00 even as SOL pulled back is an encouraging sign that investors are recognizing its distinct income proposition. He added that CHAD's recent performance shows its trading behavior can differ from SOL's.

Management keeps accumulating SOL

However, the company's own shares moved the other way. DFDV shares fell 2.2% in Monday's trading session and about 21% over the past week.

CEO Joseph Onorati said the company will keep buying. According to the release: "Short-term volatility has not changed our conviction or our commitment to accumulating SOL," Onorati said.

He also said tokenized equities are generating billions of dollars in trading activity on Solana. He specifically noted Samsung's recent announcement of bringing stablecoin functionality to 82 million U.S. Galaxy devices.

Source: The Block

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