DeFi Development (DSDV) Status update summary

August–September execution

• Core strategy remained unchanged; rising SOL prices amplified common equity as designed.

• SOL per share grew double digits from Aug. 12 to Sept. 30; management expected triple-digit NAV-per-share growth when reporting.

• In Q3, common equity rose 83% versus SOL’s 57%; in August, common equity rose over 100% while SOL gained ~38%.

Capital structure and focus

• August actions included cost reductions, a discounted convertible-debt repurchase, ZeroStack divestment and a narrower focus on on-chain protocols, simplifying the business toward leveraged SOL exposure.

• Management said it passed on registered-direct deals because discounts, fees, warrants and fundraising standstills made their opportunity cost too high amid other funding options.

• July 2030 convertible notes were cited as long-duration, low-coupon leverage designed to withstand a prolonged bear market without a SOL-treasury margin call.

CHAD preferred stock

• CHAD is a NASDAQ-listed variable-rate cumulative preferred with a current annual dividend rate of about 13% on a $10 par value, paid each business day.

• Management sees CHAD as an income-focused instrument that can broaden the investor base; proceeds from issuance at $10 or higher can fund SOL purchases and increase common shareholders’ SOL exposure.

• A $300 million CHAD ATM is intended to operate at or near $10; management identified getting CHAD to par and using the ATM as its leading growth opportunity.

• The board can raise the dividend if CHAD is below par; the announced buyback program offers another support lever, but management said repurchases are not intended to begin before CHAD reaches par.

• Management said SOL’s native yield can help fund CHAD dividends, reducing reliance on selling treasury SOL or using a common-equity ATM.