The SEC has rejected Defi Development’s attempt to provide $1 billion in securities to buy Solana due to a lack of paperwork. The company submitted that it would withdraw Form S-3.
Nevertheless, Defi Development has invested millions in Sol over the past two months, but it cannot build large stockpiles without increasing liquidity.
Sec holds down the Solana plan
Over the past few months, the number of companies following in MicroStrategy’s footsteps has increased, and have invested heavily in Bitcoin to ensure long-term profits.
Some companies have adopted alternative routes and have chosen to build reserve assets using Altcoins, particularly Ethereum, Solana and XRP.
Today, the SEC rejected Defi Development’s attempt to raise funds for the purchase of Solana, citing an error in the paperwork.
“The Company is honouring this application to withdraw its registration statement. Along with all exhibits, the Company is requesting the withdrawal of the registration statement because the (IT) Committee understands that it has determined that it has not met the eligibility requirements for the use of Form S-3 at this time.”
Defi Development has been working on the plan since April, filing with the SEC to sell $1 billion in securities for its SOLANA purchase. If this proves successful, it will be the largest corporate solder holder by a significant margin.
However, the company retracted this application as the initial efforts did not include the mandatory internal control report.
In other words, the SEC prohibits defi development from funding the purchase of these Solana. But to be clear, the company has already committed millions of people to SoL Investment.
Like MicroStrategy, the company needs considerable liquidity from stock sales to fund its pivots to Web3, but by April it raised $42 million for its SOL purchases.
Since then, Defi Development has been particularly interested in Sol Staking and has entered the market in partnership with several companies.
The company cannot accumulate large Solana stockpiles until the SEC gives it a green light. The company began the process in April, and, like it looks, the committee has been deliberating on the proposal for almost two months.
In other words, the company’s vision to become a “Solana micro-tactic” could have reached speed bumps. Bitcoin prices have been intensifying, but Solana has been cooling recently.
Still, the ETF hype could bring momentum back. For now, Defi’s development is at a dead end and it still can’t become a true Solanite whale.
