In a significant development for the cryptocurrency treasury sector, Nasdaq announced new regulations that have caused considerable concern among companies like Strategy (formerly MicroStrategy) and other firms involved in crypto treasury operations. As of 2025, these companies primarily engage in purchasing cryptocurrencies through leveraged means, often utilizing corporate debt, equities, and derivatives rather than traditional revenue-generating models.
On the morning of Thursday, shortly before the New York market opened, TheInformation reported that Nasdaq was contemplating a requirement for companies to secure shareholder approval prior to selling stock to fund purchases of digital assets. This news prompted immediate declines in the stock prices of treasury companies, including Strategy, as investors grappled with uncertainties regarding whether these firms had obtained necessary shareholder approvals for their previous capital raises, which can be dilutive to existing shareholders.
Despite Nasdaq not officially confirming the report from TheInformation, many executives in the treasury sector began to express concerns regarding the potential implications of such guidance. For instance, SharpLink, a compliant entity under Nasdaq rules, reassured investors that it would not need additional shareholder approvals if it opted to execute its At-The-Market (ATM) program to fund Ethereum purchases. The company emphasized that its strategy remains focused on raising capital only when such actions would be beneficial for shareholders.
However, the reaction from investors was swift and negative. Following the announcement, SharpLink’s stock plummeted by 4% within minutes, and despite the company’s assurances of compliance with existing Nasdaq regulations, its stock eventually fell by 19% over the week. In contrast, Strategy’s stock remained relatively stable, trading flat throughout the week and outperforming SharpLink despite the ongoing market turmoil.
Interestingly, while some executives attempted to alleviate fears regarding the new regulations, many companies did not provide sufficient assurances about their ongoing commitment to obtaining shareholder approval before undertaking potentially dilutive actions to acquire digital assets. For example, Nasdaq-listed firms such as Tether’s Twenty One experienced a decline of 13%, while Bullish saw an 18% reduction in market capitalization, and David Bailey’s Nakamoto faced a staggering 31% drop. Notably, none of the CEOs from these companies publicly addressed Nasdaq’s recent decision.
This episode highlights the growing scrutiny and regulatory environment surrounding cryptocurrency treasury operations and the potential risks involved for investors. As the landscape evolves, companies must navigate these changes carefully to maintain investor confidence and compliance with emerging regulations.
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