Nasdaq tightens rules on firms hoarding tokens, sending crypto treasury stocks lower

[Close up view of LCD billboard of the NASDAQ MarketSite]
ozgurdonmaz/iStock Unreleased via Getty Images

Shares of crypto treasury companies retreated on Thursday after a media report that Nasdaq (NASDAQ:NDAQ [https://seekingalpha.com/symbol/NDAQ]) was tightening oversight of listed firms seeking to boost valuations by issuing stock to buy tokens.

Strategy (NASDAQ:MSTR [https://seekingalpha.com/symbol/MSTR]), a pioneer in the crypto treasury strategy, dipped 2.7%, ether-focused SharpLink Gaming (NASDAQ:SBET [https://seekingalpha.com/symbol/SBET]) gapped down 8.3%, Bitmine Immersion Technologies (NYSE:BMNR [https://seekingalpha.com/symbol/BMNR]) -6.6%, Metaplanet (OTC:MTPLF [https://seekingalpha.com/symbol/MTPLF]) -6.7%, Mercury Fintech Holding (NASDAQ:MFH [https://seekingalpha.com/symbol/MFH]) -19% and Kindly MD (NASDAQ:NAKA [https://seekingalpha.com/symbol/NAKA]) -5.2%, as of 11:22 a.m. ET.

Underlying crypto prices also saw selling pressure, with bitcoin (BTC-USD [https://seekingalpha.com/symbol/BTC-USD]) down 2.1% in the past 24 hours to $109.3K and ether (ETH-USD [https://seekingalpha.com/symbol/ETH-USD]) off 3.3% to $4.30K at press time.

Crypto treasury stocks have gained popularity as investors generally see them as an easy, leveraged way to get exposure to crypto through traditional markets. These vehicles have thrived under U.S. President Donald Trump's push to make the U.S. a leader in crypto with greater regulatory clarity and looser rules.

But the Nasdaq (NASDAQ:NDAQ [https://seekingalpha.com/symbol/NDAQ]) scrutiny complicates things. The stock exchange is telling certain companies they can't sell new shares to fund crypto purchases without first getting the green light from shareholders, The Information reported, citing people familiar with the matter.

The move is meant to curb the corporate rush into so-called HODLing and ensure investors are fully informed before a company makes the crypto treasury pivot, the article said [https://www.theinformation.com/articles/nasdaq-steps-scrutiny-companies-loading-crypto].

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