SEC rejects $1B Solana fundraising plan by DeFi Development
DeFi Development withdraws SEC filing
DeFi Development Corp has encountered a regulatory obstacle after the U.S. Securities and Exchange Commission (SEC) rejected its ambitious plan to raise $1 billion for large-scale investments in Solana (SOL).
The company withdrew its Form S-3 registration after the SEC pointed out the absence of a mandatory internal controls report—a key component of Form 10-K, according to the regulator's website.
A strategy inspired by MicroStrategy
The registration, submitted in late April 2025, aimed to raise capital through a securities offering, with part of the proceeds intended for purchasing Solana tokens.
DeFi Development’s plan was modeled after MicroStrategy’s approach to Bitcoin, but instead focused on Solana. According to BeInCrypto, had the initiative been successful, the company could have become one of the largest corporate holders of SOL.
Ongoing investments and need for approval
Although the company never issued any securities under the rejected filing, it has already invested millions of dollars in Solana and partnered with several firms to explore SOL staking opportunities. However, to significantly expand its holdings, DeFi Development needs SEC approval to raise further capital via equity issuance. The regulatory rejection highlights the importance of compliance for all firms operating in the crypto sector.
Outlook and market implications
Despite this setback, the company remains committed to its strategy. DeFi Development has announced plans to address the SEC’s concerns and refile the necessary documents.
The situation raises broader questions about how U.S. regulators will treat similar corporate efforts to build reserves in altcoins like Solana or Ethereum—especially compared to more traditional crypto plays like Bitcoin. For now, the market is watching closely to see what DeFi Development does next. The firm could still emerge as a major player in Web3 treasury strategy, but its plan to become the “MicroStrategy of Solana” is currently on hold.
As a reminder, in May the SEC postponed its decisions on Solana ETF applications from Bitwise, 21Shares, VanEck, and Canary.
