DeFi Development Corp. has withdrawn its planned $1 billion securities offering after the U.S. Securities and Exchange Commission deemed the company ineligible to file under Form S-3.
The company confirmed the withdrawal in a June 11 letter to the SEC, citing the absence of a required internal controls report in its most recent 10-K filing. The Nasdaq-listed firm had filed the S-3 registration in April with the aim of raising funds for general corporate use, including the purchase of additional Solana (SOL) tokens.
The plan echoed Strategy’s well-known Bitcoin (BTC) strategy, with DeFi Development aiming to become a public market vehicle for Solana exposure. While no securities were issued or sold under the now-withdrawn registration, the SEC’s move is a major regulatory setback for the company’s treasury-focused crypto strategy.
The SEC’s rejection highlights ongoing challenges for firms trying to navigate U.S. securities rules while building corporate crypto reserves.
Despite the withdrawal, DeFi Development has stated that it intends to refile a resale registration at a later date, once compliance issues are addressed. The company noted that the withdrawal was “consistent with the public interest and the protection of investors.”
DeFi Development has already invested significantly in Solana, with reported holdings of over 600,000 SOL, valued at more than $100 million. In May, it also became the first publicly traded firm to adopt liquid staking tokens on Solana, converting part of its holdings into dfdvSOL through Sanctum’s staking infrastructure. That move was intended to allow the company to retain liquidity while earning staking rewards.
Earlier this month, DeFi Development announced a strategic partnership with Amber International to expand access to Solana markets and building yield-focused treasury products. The firm has also been listed on the Frankfurt Stock Exchange and now trades options on CBOE and Nasdaq, increasing its visibility among institutional investors.
Originally focused on real estate finance, the company rebranded in April after a new team, reportedly including former Kraken executives, took over with a crypto-first strategy centered on Solana.
While its billion-dollar shelf offering is on hold for now, DeFi Development appears committed to building a public-facing Solana treasury model. Its next steps will likely depend on how it addresses SEC concerns and whether regulators warm to similar strategies involving altcoins.
