DeFi Development Corp. Declares Cash Dividends on CHAD Preferred Stock

What Happened

• DeFi Development Corp. (DFDV) announced on September 15, 2026 (8-K filed 9/16/2026) that its board declared cash dividends on its Variable Rate Series C Perpetual Preferred Stock (CHAD).
• A one-time payment of $0.07944 per CHAD share covers the period from issuance (September 8, 2026) through October 1, 2026. Additionally, the board declared daily cash dividends of $0.00516 per share for each business day from October 1, 2026 through October 30, 2026 (21 business days). These payments correspond to a stated annual dividend rate of 13.00%.
• Payments are made to holders of record at the close of business on the immediately preceding business day; the filing lists the record dates and payment dates from September 30, 2026 (paid Oct 1) through October 30, 2026 (paid Nov 2).

Key Details

• Dividend amounts: $0.07944 (for Sep 8–Oct 1, 2026) and $0.00516 per share for each business day Oct 1–Oct 30, 2026.
• Aggregate schedule covers 21 business days in October 2026; annualized dividend rate = 13.00%.
• CHAD issuance date: September 8, 2026; record/payment schedule runs from Oct 1, 2026 to Nov 2, 2026 (per table in filing).
• U.S. federal tax note: distributions not treated as paid from earnings & profits may be treated as a tax-free return of capital (reducing holder basis) and then capital gain; company states it has no accumulated earnings and profits and does not expect to generate current E&P in the foreseeable future.

Why It Matters

• Income impact: CHAD holders will receive specified cash payments (including the initial $0.07944 and the daily $0.00516 amounts), providing a predictable short-term cash return at a 13.00% annualized rate.
• Tax impact: Investors should be aware the payments may be treated as return of capital (not ordinary dividend income) to the extent of their basis, with remaining amounts treated as capital gain—this affects tax timing and basis calculations.
• Trading/record logistics: Payment depends on being a holder of record at specified close-of-business dates; investors should consider record dates and settlement timing when buying or selling CHAD.
• No speculation here: the company disclosed it currently has no accumulated earnings & profits and does not expect to generate current E&P, which bears on how distributions will be classified for tax purposes.