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- Nasdaq now requires shareholder approval for new crypto purchases.
- Bitcoin and Ethereum treasuries still dominate public crypto holdings.
- Crypto treasury stocks fell following Nasdaq’s new oversight announcement.
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Nasdaq is increasing scrutiny on publicly listed companies holding significant cryptocurrency reserves, aiming to safeguard investors amid the rise of crypto treasury firms. The move comes as new companies seek to replicate the model pioneered by Michael Saylor’s Strategy, emphasizing crypto as a primary reserve asset.
Nasdaq’s New Rule for Crypto Treasury Firms
According to a report by The Information, Nasdaq now requires companies using crypto as a main reserve to obtain shareholder approval before issuing new shares for crypto purchases. This rule ensures that investors understand the risks and benefits of crypto treasury strategies.
The oversight targets not only Bitcoin and Ethereum-focused firms but also newer entrants investing in Solana, XRP, BNB, HYPE, Toncoin, and Dogecoin. For example, Portage Biotech recently rebranded as AlphaTON Capital and launched a $100 million treasury in TON.
Bitcoin and Ethereum Treasury Companies Continue to Dominate
Bitcoin and Ethereum treasury companies remain the most influential players in the market. Data from BitcoinTreasuries shows over 100 public Bitcoin treasury companies, led by Michael Saylor’s Strategy, which currently holds 636,505 BTC following a $444 million purchase. Cumulatively, these companies control over 1 million BTC.
Ethereum treasuries are also substantial, with 71 companies holding 4.71 million ETH ($20.27 billion), representing 3.89% of Ethereum’s total supply. Tom Lee’s BitMine leads Ethereum holdings with 1.87 million ETH.
Also Read: Solana Reaches $500M RWAs as Galaxy Digital Tokenizes Nasdaq Shares On-Chain
Market Reaction to Nasdaq’s Oversight
The announcement of Nasdaq’s new requirement triggered declines in crypto treasury stocks. Strategy’s stock fell over 2% to $322, while Ethereum treasury companies BitMine and SharpLink saw drops of 8.7% and 9%, respectively. These declines coincided with broader cryptocurrency market downturns affecting Bitcoin, Ethereum, and other major assets.
Nasdaq’s increased oversight reflects the growing influence of crypto treasury companies in public markets and the need for investor protection. While Bitcoin and Ethereum remain the primary focus, the rise of new crypto assets in treasuries underscores the evolving landscape of digital asset strategies among publicly listed companies.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
