DeFi Development plans $1 billion Solana raise after SEC delay

DeFi Development Corp, a Nasdaq-listed company transitioning into a Solana (CRYPTO:SOL) treasury firm, faced a delay in its plan to raise $1 billion to acquire more Solana tokens after the US Securities and Exchange Commission (SEC) rejected its S-3 filing.

The SEC found the company ineligible to submit Form S-3 due to the absence of a timely management report on internal controls over financial reporting.

In response, DeFi Development announced it would withdraw the registration statement to comply with regulatory requirements, stating the move aligns with “public interest and the protection of investors.”

Despite the setback, the company plans to refile a resale registration statement to secure capital for general corporate purposes, including further Solana purchases.

DeFi Development initially filed the Form S-3 on April 25, aiming to use the proceeds to expand its Solana holdings.

The company cautioned that Solana’s price volatility could affect the value of its token acquisitions if conversions to cash occur at lower prices.

Since shifting from a real estate financing business, DeFi Development has focused on building a Solana treasury, acquiring over 609,000 Solana tokens valued at more than $97 million.

Its first Solana purchase was 2,858 tokens on April 8, followed by multiple acquisitions, including 16,447 tokens at an average price of $139.66 on May 15.

The firm also adopted Solana liquid staking tokens, reallocating part of its holdings to dfdvSOL, a liquid staking asset.

A group of former Kraken exchange executives acquired 728,632 shares of DeFi Development’s common stock in early April.

Joseph Onorati, ex-chief strategy officer at Kraken, now serves as the company’s chairman and CEO.

DeFi Development’s efforts reflect a broader trend of companies diversifying corporate treasuries with digital assets, particularly Solana and Bitcoin (CRYPTO:BTC).

According to Bitbo data, corporate Bitcoin treasuries hold over three million Bitcoin, valued at more than $342 billion.

At the time of reporting, the Solana (SOL) price was $159.22.