DeFi Development Keeps Buying SOL as CHAD Hits Record Highs — SkimNews
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- DeFi Development Corp added about 22,070 SOL (~$2.37M) last week, lifting its treasury to roughly 2,586,282 tokens worth ~$287M with SOL near $111 — a 12% increase since August 12.
- CHAD, the company's perpetual preferred stock, hit all-time highs in the week ended October 9 and is approaching its $10 stated amount, even though it IPO'd at just $8 in September.
- DFDV's weekly SOL purchases have shrunk dramatically — from 101,381 tokens in mid-September (~$11.4M) to 47,706, then 26,202, and now 22,070 (~$2.37M), roughly a 78% drop in dollar terms.
- The company funds SOL buys through a $300M at-the-market program that issues new CHAD shares; the closer CHAD trades to $10 par, the more SOL each new share acquires.
- SOL fell about 9% over seven days while nearly $1B in long positions were liquidated in 24 hours, yet CEO Joseph Onorati said 'short-term volatility has not changed our conviction or our commitment to accumulating SOL.'
- DFDV common stock trades near $4.41, giving it a market value of about $140M — roughly half the $287M value of its SOL holdings — meaning issuing new equity to buy more tokens is dilutive on paper.
Why it matters: DFDV's accumulation model depends on CHAD trading near its $10 par so each newly issued share buys meaningful SOL. With DFDV common stock trading below the value of its crypto stash and weekly purchases down nearly 80% from mid-September, the SOL-per-share growth engine that justifies the strategy is visibly losing fuel.
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