DeFi Development Corp: $1 billion for Solana at risk!

DeFi Development Corp: $1 billion for Solana at risk!

DeFi Development Corp. plans to raise $1 billion to purchase Solana. This has become a current challenge as the US Securities and Exchange Commission (SEC) has rejected the company's registration statement. The S-3 filing was deemed inadequate because it did not contain a required management report on internal control over financial reporting. As a result, DeFi Development Corp. announced that it is withdrawing the registration statement and plans to refile it in the future. Loud Cointelegraph The company has invested in Solana in recent months, but greater liquidity is needed to make large purchases.

On April 25, the company filed its registration statement with the SEC to use funds for corporate purposes, including Solana purchases. But the SEC rejected an attempt to offer $1 billion in securities to finance Solana purchases. The reason for this was a lack of documents that are essential for approval, such as BeInCrypto reported.

Investments and developments

The DeFi Development Corp. has raised a total of $42 million in SOL purchases since April and made its first purchase of 2,858 SOL on April 8th. This was followed on May 15 by another purchase of 16,447 Solana at an average price of $139.66, bringing the company's total holdings to 609,190 SOL and representing a value of over $97 million. The company has also developed a particular interest in SOL staking and has partnered with several firms.

Behind DeFi Development Corp. stands a team of former executives from crypto exchange Kraken, led by Joseph Onorati, who serves as the new chairman and CEO. Additionally, the company announced on May 28 that it would take over Solana Liquid Staking tokens and redirect some of its holdings into dfdvSOL. Despite these activities, however, the company warns of possible fluctuations in the value of the Solana price, especially in light of the SEC decision.

Current market developments

Parallel to the activities of DeFi Development Corp. The crypto market is generally volatile. The price of Bitcoin has recently risen while Solana's price has fallen. However, experts believe that the hype surrounding Bitcoin ETFs could potentially also attract the price of Solana, which would influence the market situation for DeFi Development Corps investments.

In the current situation, the DeFi Development Corp. in a dead end and cannot yet act as a significant Solana investor. The lack of SEC approval prevents the company from financing major Solana purchases until all bureaucratic hurdles are overcome.