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Solana Treasury Firms Split as DeFi Development Adds SOL and SkyAI Sells
One firm is raising preferred-stock income to buy SOL as another liquidates its treasury
TL;DR
- DeFi Development is increasing CHAD’s dividend as it seeks more capital to expand its Solana treasury.
- SkyAI has sharply reduced its SOL holdings to finance a share-and-warrant tender offer.
- Bastion Trading is challenging SkyAI’s sales, proposed buyback terms and board structure.
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Two publicly traded Solana treasury companies are taking opposite approaches to their SOL holdings. DeFi Development Corp. is raising the dividend on its CHAD preferred stock effective Nov. 2 as it seeks to fund further SOL accumulation, while SkyAI has sold most of its SOL treasury to finance a tender offer, prompting objections from major shareholder Bastion Trading.
DeFi Development raises CHAD payout to expand SOL treasury
Nasdaq-listed DeFi Development is increasing CHAD’s annual dividend rate from 13% to 14%. That lifts annual dividends to $1.40 per share from $1.30, based on the preferred stock’s $10 stated value. Payments are made each business day when declared by the company’s board. DeFi Development said proceeds from future CHAD issuances will be used to expand its Solana treasury, which generates returns through staking and validator operations.
CEO Joseph Onorati said the higher rate “strengthens that proposition as we broaden investor participation and scale CHAD.” He added:
“CHAD's proposition is compelling: double-digit dividend income, paid every business day, through a Nasdaq-listed preferred security issued by a company with a productive SOL treasury.”
Onorati continued:
“We see a significant opportunity to build CHAD into a leading digital credit instrument, expanding our capacity to accumulate SOL and drive accretive growth for common shareholders while maintaining disciplined capital management.”
DeFi Development added approximately 22,070 SOL and SOL equivalents last week, taking total holdings to about 2.59 million SOL. The company said CHAD reached record trading highs during the same week. It has also authorized a program that could repurchase up to all outstanding CHAD shares.
SkyAI cuts SOL holdings as Bastion challenges tender offer
Bastion Trading, which holds nearly 10% of SkyAI, said it would not participate in the company’s proposed $3-per-share tender offer until its concerns are addressed. Bastion also renewed its call for a complete overhaul of SkyAI’s board.
SkyAI’s disclosed SOL balances fell rapidly across several updates:
The filing did not explain the 400,000 SOL difference from SkyAI’s previously announced sale. Bastion asked the company to disclose the dates, quantities, prices and proceeds of its recent SOL sales, along with how the transactions were approved. Bastion called the sale a “fundamental departure” from SkyAI’s treasury strategy.
SkyAI said proceeds from the sales would fund purchases of up to 95% of its outstanding shares and warrants for around $200 million. Bastion wants the buyback price raised to $3.50 per share and wants strategic advisor warrants excluded, arguing they were granted to a company controlled by the brother of SkyAI’s chief investment officer.
The dispute follows a September shareholder protest in which all five SkyAI directors received more withhold votes than support. The directors kept their seats because shareholders did not have an option to vote for their removal.
This article has been refined and enhanced by ChatGPT.
