DeFi Development Corp has hit a minor setback in its quest to raise $1 billion to buy more Solana

The Nasdaq-listed firm said in a statement to the SEC on Wednesday that it seeks to withdraw its previous registration statement because the commission found it wasn't eligible to submit a Form S-3 after failing to include a management report on internal control over financial reporting before the due date.

DeFi Development Corp has run into a minor setback on its quest to raise $1 billion to buy more Solana after the US Securities and Exchange Commission knocked back its S-3 filing.

The Nasdaq-listed firm said in a statement to the SEC on Wednesday that it seeks to withdraw its previous registration statement because the commission found it wasn’t eligible to submit a Form S-3 after failing to include a management report on internal control over financial reporting before the due date.

A growing number of companies have been acquiring crypto, especially Bitcoin (BTC), with corporate Bitcoin treasuries collectively holding over three million Bitcoin, worth over $342 billion, according to Bitbo data.

Solana purchase plan not dead

DeFi Development Corp said the withdrawal of the registration statement is consistent with the “public interest and the protection of investors.”

Despite the minor setback, DeFi Development Corp said it would file a resale registration statement in the future to raise the capital.

DeFi Development Corp filed the Form S-3 registration statement with the SEC on April 25 to use the funds for general corporate purposes, including more Solana (SOL) token acquisitions.

It said at the time it may consider buying more Solana with the net proceeds from this purchase. However, it also warned that fluctuations in Solana’s price could lead to it converting the tokens into cash at a lower value.

Related: Solana firms make moves on staking, treasury and compliance

In a May 28 announcement, the firm also announced its adoption of Solana liquid staking tokens and diverted part of its Solana holdings to the liquid staking token dfdvSOL.

DeFi Development Corp jumps on the Solana train

DeFi Development Corp, formerly Janover, was mainly a real estate financing company that used an AI-powered online platform connecting lenders and commercial property buyers. It has since become a Solana Treasury Company as well, with its first purchase of 2,858 Sol on April 8.

The company made its 11th purchase of 16,447 Solana at an average price of $139.66 on May 15, increasing its stash to 609,190 Sol, worth over $97 million at current prices.

A team of former Kraken exchange executives took over DeFi Development Corp after purchasing over 728,000 shares on April 7. Joseph Onorati, former chief strategy officer at Kraken, has since been appointed chairman and CEO.