DeFi Development Corp has encountered a minor hurdle in its bid to raise $1 billion to purchase more Solana, after the U.S. Securities and Exchange Commission (SEC) rejected its S-3 filing.
In a statement submitted to the SEC on Wednesday, the Nasdaq-listed company said it plans to withdraw its previous registration after the commission determined it was ineligible to file a Form S-3. The SEC cited the company’s failure to include a management report on internal control over financial reporting by the required deadline.
An increasing number of firms have been adding crypto assets to their balance sheets—primarily Bitcoin. According to data from Bitbo, corporate treasuries now collectively hold more than three million Bitcoin, valued at over $342 billion.
Solana Acquisition Plan Still Alive
DeFi Development Corp stated that withdrawing the registration statement aligns with “the public interest and the protection of investors.”
Despite the setback, the company emphasized its intention to submit a new resale registration statement in the future to raise the targeted funds. The original Form S-3, filed with the SEC on April 25, outlined plans to use the capital for general corporate purposes, including additional acquisitions of Solana tokens.
At the time, the company noted it might use the net proceeds to acquire more Solana, but cautioned that price volatility could result in converting the tokens into cash at a reduced value.
In a May 28 announcement, DeFi Development Corp also revealed it had adopted Solana liquid staking tokens, allocating a portion of its Solana holdings to the liquid staking token dfdvSOL.
DeFi Development Corp Rides the Solana Wave
DeFi Development Corp, formerly a real estate financing firm that operated an AI-driven platform connecting lenders with commercial property buyers, has since pivoted to focus on becoming a Solana Treasury Company. The shift began with its initial purchase of 2,858 SOL on April 8.
On May 15, DeFi Development Corp made its 11th Solana purchase, acquiring 16,447 SOL at an average price of $139.66. This brought its total holdings to 609,190 SOL, valued at over $97 million at current market prices.
Earlier, on April 7, a group of former Kraken exchange executives purchased 728,632 shares of DeFi Development Corp’s common stock. Following the acquisition, Joseph Onorati, Kraken’s former Chief Strategy Officer, was appointed as the company’s chairman and CEO.
