DeFi Development Corp Faces Minor Setback with SEC as Solana Acquisition Drive Continues
Nasdaq-listed DeFi Development Corp. encountered a hurdle in its plan to raise $1 billion for further Solana (SOL) purchases after the U.S. Securities and Exchange Commission (SEC) rejected its S-3 registration filing.
According to a statement submitted to the SEC on Wednesday, DeFi Development cited the regulator’s feedback. The SEC found the company ineligible for the Form S-3 because it had failed to include a management report detailing internal control over financial reporting, a requirement not met by the filing deadline.
Solana Purchase Plans Not Dead
Despite the setback, DeFi Development asserted that withdrawing the registration statement aligns with “public interest and the protection of investors.”
The company stressed it will not let this issue deter its capital-raising strategy. It confirmed plans to file a resale registration statement in the future specifically to access funds required for its objectives.
The initial S-3 filing on April 25 aimed to raise capital via equity resale, with allocations for general corporate use including substantially increased acquisitions of Solana tokens.
Alongside the announced funds, DeFi noted an earlier commitment, stating it could consider buying more Solana using net proceeds. However, the company also cautioned that price volatility of SOL represents a significant risk, potentially forcing conversion at a loss.
The company recently adopted Solana liquid staking tokens, transferring part of its SOL holdings into dfdvSOL.
DeFi Development Corp. Jumps on the Solana Train
DeFi Development Corp., formerly known as Janover, has a complex background; it was initially a real estate financing entity leveraging AI for commercial property finance. It transitioned recently into a prominent Solana Treasury Company.
As a newly established entity in this space, the company already maintained a substantial treasury of nearly 609,190 SOL tokens after its first and subsequent purchases.
On April 8, DeFi acquired its first batch of 2,858 SOL. It continued this strategy, making its 11th purchase on May 15, acquiring 16,447 SOL averaging $139.66, bringing its total surpassing 600,000 holdings and increasing in value significantly.
The company also reported strengthening its management team with the integration of experts from Kraken Exchange. Joseph Onorati, Kraken’s former chief strategy officer, was appointed Chairman and CEO.
