DeFi Development sets 13% dividend on CHAD preferred
DeFi Development Corp. declares high-yield cash dividends on CHAD preferred stock, while stating it does not expect current earnings and profits in the foreseeable future.
Rhea-AI Filing Summary
DeFi Development Corp. (CHAD) announced that its board declared cash dividends on its Variable Rate Series C Perpetual Preferred Stock (“CHAD Stock”). The company set a cash dividend of $0.07944 per share for the period from September 8, 2026 (issuance) to October 1, 2026.
For the period from October 1, 2026 through October 30, 2026, the company declared daily cash dividends of $0.00516 per share for each of 21 business days, corresponding to a 13.00% per annum dividend rate. Daily payments will be made to stockholders of record at the close of business on the immediately preceding business day. The company states it has no accumulated earnings and profits and does not expect to generate current earnings and profits in the current year or the foreseeable future, so distributions may be treated for U.S. tax purposes primarily as a tax-free return of capital up to a holder’s basis, and thereafter as capital gain.
Positive
- 13.00% per annum dividend rate set on CHAD preferred stock, with specified cash dividends through October 30, 2026 providing defined near-term income to holders.
Negative
- The company states it has no accumulated earnings and profits and does not expect to generate current earnings and profits in the current year or the foreseeable future, indicating ongoing lack of profitability.
- Because of the lack of earnings and profits, distributions on CHAD are expected to be treated largely as return of capital rather than dividend income for U.S. holders, signaling limited taxable earnings.
Insights
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8-K Event Classification
Item 8.01 — Other Events
1 item
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Key Figures
Initial CHAD dividend: $0.07944 per share
Daily CHAD dividend: $0.00516 per share per business day
Annual dividend rate on CHAD: 13.00% per annum
+3 more
6 metrics
Initial CHAD dividend
$0.07944 per share
Cash dividend for period from September 8, 2026 issuance of CHAD to October 1, 2026
Daily CHAD dividend
$0.00516 per share per business day
Declared for each business day from October 1, 2026 through October 30, 2026 (21 business days)
Annual dividend rate on CHAD
13.00% per annum
Stated dividend rate applicable to the CHAD Stock during the indicated period
Dividend period business days
21 business days
Number of business days from October 1, 2026 through October 30, 2026 with $0.00516 daily dividends
Par value of CHAD Stock
$0.00001 per share
Par value of Variable Rate Series C Perpetual Preferred Stock listed as CHAD
Earnings and profits status
No accumulated E&P; no current E&P expected
Company states it does not have accumulated earnings and profits and does not expect to generate current earnings and profits in the current year or foreseeable future
Key Terms
Variable Rate Series C Perpetual Preferred Stock, return of capital, earnings and profits, withholding tax, +1 more
5 terms
Variable Rate Series C Perpetual Preferred Stock financial
"initial public offering of the Variable Rate Series C Perpetual Preferred Stock"
return of capital financial
"treated first as a tax-free return of capital (“ROC”)"
Return of capital is when an investor receives money from their investment that is not considered profit or earnings but rather a portion of the original amount they invested. It’s similar to getting back part of your initial savings rather than gains from it. This matters because it can affect how much money an investor still has in the investment and may have tax implications.
earnings and profits financial
"distributions are not treated as being made out of the Company's accumulated or current earnings and profits"
Earnings and profits describe the money a business keeps after covering its costs and expenses; 'earnings' usually means the final bottom-line amount while 'profits' can refer to that or to earlier stages after some costs are deducted. Investors watch these figures as a measure of a company's ability to grow, pay dividends and justify its stock price—think of it like a household’s leftover income after all bills, savings and necessary spending are paid.
withholding tax financial
"generally will not be subject to U.S. federal income or withholding tax"
Withholding tax is a government-required portion of a payment—such as dividends, interest, or salary—that the payer keeps back and sends directly to tax authorities before the recipient receives the money. For investors it reduces the cash they actually get and changes the after-tax return on an investment; rates and refund or credit rules vary by country and can materially affect comparisons between similar investments, like a cashier holding part of a bill to cover taxes.
beneficial owner financial
"a “U.S. holder” means a beneficial owner of the CHAD Stock"
A beneficial owner is the person who ultimately owns or controls a financial asset or property, even if their name isn't directly on official documents. Think of it like someone who secretly holds the keys to a safe deposit box—others may appear to have access, but the true owner is the one who benefits from what's inside. Identifying beneficial owners helps ensure transparency and prevent illegal activities like money laundering or fraud.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What dividend did DeFi Development Corp. (CHAD) declare on its CHAD preferred stock?
The board declared a cash dividend of $0.07944 per share on CHAD Stock for the period from its issuance on September 8, 2026 through October 1, 2026, plus separate daily dividends for October 2026 business days.
What is the ongoing daily dividend rate for CHAD preferred stock?
For October 1–30, 2026, DeFi Development Corp. declared daily cash dividends of $0.00516 per share of CHAD Stock for each of 21 business days, which the company states represents a 13.00% per annum dividend rate.
How will CHAD dividends likely be treated for U.S. federal income tax purposes?
The company states it has no accumulated earnings and profits and does not expect current earnings and profits, so distributions are expected to be treated first as a tax-free return of capital up to basis, then as capital gain for U.S. holders.
Do non-U.S. holders of CHAD face U.S. tax on these distributions?
The filing states that, to the extent distributions are not out of earnings and profits, a non-U.S. holder generally will not be subject to U.S. federal income or withholding tax on any gain recognized in connection with receipt of such distributions.
Who will receive the daily CHAD dividend payments and when are record dates set?
Daily dividends of $0.00516 per share will be paid to CHAD stockholders of record at the close of business on the immediately preceding business day, following the record and payment schedule listed for October 2026.
What security types does DeFi Development Corp. (CHAD) have listed on Nasdaq?
The company lists Common Stock (DFDV), warrants (DFDVW), and Variable Rate Series C Perpetual Preferred Stock (CHAD) on The Nasdaq Stock Market LLC.
AI-generated analysis. How Rhea-AI works. Not financial advice.
