Solana Stumble: DeFi Development Corp’s SEC Setback Slows $1B Ambition

DeFi Development Corp, a Nasdaq-listed company aiming to become a major Solana holder, has hit a regulatory speed bump. The U.S. Securities and Exchange Commission (SEC) rejected the company’s S-3 filing—an important step in its plan to raise $1 billion—due to compliance issues related to internal financial reporting. In a filing submitted on Wednesday, DeFi Development Corp said it would withdraw its S-3 registration after the SEC found it ineligible due to the absence of a required management report on internal controls over financial reporting. The firm acknowledged the withdrawal was “consistent with the public interest and the protection of investors.” Solana Plans Still in Motion Despite the SEC’s rejection, DeFi Development Corp emphasized that its plans are far from over. The company said it intends to refile a resale registration statement at a later date to continue pursuing its capital raise. The original filing, made on April 25, outlined a broad use of funds including corporate expansion and additional Solana purchases . This isn’t DeFi Development Corp’s first move in the Solana ecosystem. In a separate announcement on May 28, the firm revealed it had adopted liquid staking strategies using the dfdvSOL token, converting a portion of its SOL holdings into these yield-generating assets. It had also cautioned that price volatility could affect the value of its SOL holdings, with the potential need to convert tokens into cash at a loss. Notably, Bitcoin remains the top digital asset on corporate balance sheets—with over 3 million BTC held across institutions, currently worth more than $342 billion. However, DeFi Development Corp is carving out a unique path as a Solana-focused treasury firm. From Real Estate to Crypto Treasury Originally a real estate financing company leveraging AI to match lenders and property buyers, DeFi Development Corp has fully shifted to the blockchain sector . Its transformation began in earnest with its first Solana purchase of 2,858 tokens on April 8. By May 15, the company had made its 11th Solana acquisition, bringing its total holdings to 609,190 SOL—valued at over $97 million based on current prices. The company’s leadership has also seen a shake-up. A group of former Kraken exchange executives purchased 728,632 shares of DeFi Development Corp on April 7. Joseph Onorati, Kraken’s former chief strategy officer, now serves as chairman and CEO, steering the firm’s bold move into Solana territory. The post Solana Stumble: DeFi Development Corp’s SEC Setback Slows $1B Ambition appeared first on TheCoinrise.com .

Source: The Coin Rise