SEC rejected the Defi Development attempt to offer $ 1 billion in securities to buy Solana, due to the lost papers. The company has withdrawn the S-3 form, which intends to recycle in the future.
However, Defi Development has invested millions in Sol in the past two months, but will not be able to build a huge stock without more liquidity.
SEC suffocates Solana plans
During the past few months, a growing number of companies tracked in the footsteps of Microstrategy, where they are intense in bitcoin to ensure long -term gains.
Some companies took the alternative road, chose to build backup assets with Altcoins – most notably Ethereum, Solana and XRP.
Today, the Supreme Education Council unacceptable Defi Development attempt to raise money for Solana purchases, noting the errors of the papers:
“The company respects this request to withdraw the registration statement, along with all exhibitions. The company seeks to withdraw the registration statement because …[it] You realize that the committee decided that the company does not meet the requirements of eligibility to use the S-3 at this time, “the latest Defi Development presentation Read.
Defi Development has been working on this plan since April, as it has advanced to SEC to sell a billion dollars of securities for Solana purchases. If this proves success, it will become the largest seed holder of companies with a large margin.
However, its first effort did not contain mandatory internal controls report, causing the company to withdraw this request.
In other words, SEC prevented Defi’s development from financing these Solana purchases. To be clear, the company already has committed Millions for investment.
Like Microstrategy, the company needs great liquidity of stock sales to finance its axis to Web3, but it raised $ 42 million to Sol purchases by April.
Since then, Defi’s development is particularly interested in Sol Stokeing and partnership With several Companies To enter this market.
The company will not be able to assemble a huge Solana stock until SEC gives it green light. The company started this process again in April, and as it seems, the committee circulated the proposal for about two months.
In other words, the company’s vision to become “Solana’s Microstrategy” may have hit the stumbling block. The price of Bitcoin is declining, but Solana’s has calmed in recent days.
However, the momentum may be gained again, thanks to Etf Hype. Currently, Defi Development is on a dead end and will not be able to become a real Solana whale yet.
Disintegration
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