DeFi Development Corp had to withdraw its application for a $1 billion Solana (SOL) purchase plan because it could not timely deliver the management's internal control report to the SEC.
Previously engaged in real estate financing, but recently changed its area of operation to invest in Solana, DeFi Development (formerly known as Janover) faced a significant setback. The U.S. Securities and Exchange Commission (SEC) rejected the company's application due to the absence of a management internal control report in its Form S-3 filing. Consequently, the company announced that it would withdraw its $1 billion shelf offering.
DeFi Development planned to use part of these funds for the purchase of Solana tokens. In a statement sent to the SEC, the company noted that withdrawing the application was 'in the public interest and appropriate for investor protection.' Nevertheless, it announced that it would apply for a sales registration again in the future and continue its capital-raising plans.
Solana investment will continue
DeFi Development submitted its Form S-3 application to the SEC in April and stated that the funds raised could be used for general corporate purposes, including purchasing Solana tokens. The company also warned investors about the risks of potential fluctuations in Solana's price.
The company announced in May that it had converted some of its Solana assets into the liquid staking token dfdvSOL. Currently, DeFi Development holds 609,190 SOL in its reserves, and the total value of this amount is approximately $97 million.
Major investment from the Kraken team
DeFi Development previously served as an AI-based real estate financing platform but changed its strategy to become a Solana-focused company. Former senior executives from the Kraken exchange joined the company's management, and Kraken's former chief strategist Joseph Onorati became the new CEO.
