What DeFi Development (DFDV) Said on Its Q3 Earnings Call - Yahoo Finance
DeFi Development Corp. (NASDAQ:DFDV) reported strong third-quarter performance with Solana per share rising over 20% and cash doubling, driven by Solana's price increase and its CHAD preferred stock launch.
During its October and third-quarter business recap, the company revealed that Solana per share (SPS) grew more than 20%, while net asset value per share increased more than fourfold. Cash reserves doubled from the previous quarter, with executives attributing this performance to both rising Solana prices and the launch of CHAD, a variable-rate perpetual preferred instrument.
CHAD Issuance Strategy
CEO Joseph Onorati described CHAD as the quarter's biggest highlight, noting it reached its $10 par value just 48 calendar days after trading began. The company has begun issuing additional CHAD shares through its at-the-market program exclusively at $10, with some proceeds used to purchase more Solana.
The perpetual preferred stock pays a 14% dividend, which management said is covered about five times by organic yield.
Solana Performance
Onorati reported that Solana's price rose from approximately $70 to $120 during the third quarter. He emphasized that DeFi Development's common stock outperformed Solana by about three times in August and by about 1.5 times for the entire quarter, demonstrating the company's leveraged exposure strategy.
Future Growth Plans
The company is focusing its on-chain strategy on staking and borrowing Solana to boost yield, while exploring CHADx trading on Solana platforms. Executives identified expanding CHAD as their biggest growth opportunity, though they currently have no plans to disclose short-term fundraising amounts.
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