DeFi Development Corp. a Nasdaq-listed Solana treasury firm, authorized a perpetual buyback program on Oct. 6 to repurchase CHAD preferred stock if the price falls below its $10 par value.
The company stated it has no immediate plans to initiate repurchases. Its primary objective is to establish market liquidity for CHAD and stabilize its price at or around the $10 face value.
The authorization expands DeFi Development's capital allocation tools and complements its existing $300 million CHAD at-the-market issuance program. Proceeds from the ATM offering are intended to fund SOL purchases, according to company statements.
DeFi Development paid its first CHAD dividend on Oct. 1, five days before the repurchase authorization. By setting a $10 par floor, the company can intervene if market forces push the share price lower.
The authorization is open-ended with no set expiration date, providing long-term flexibility for DeFi Development to manage its preferred stock through both issuance and buyback mechanisms.
