US Regulators Examine Trading Patterns Before Firms Announced Crypto Treasury Holdings: Report
US regulators are investigating sharp swings in inventory costs earlier than firms revealed plans to boost funds for crypto treasury purchases, the Wall Street Journal reported on Thursday.
The Securities and Exchange Commission and the Financial Industry Regulatory Authority have contacted a few of the greater than 200 companies that introduced crypto treasury methods this 12 months, sources informed the Journal.
Officials warned firms about attainable breaches of guidelines towards selectively sharing materials private data.
The scrutiny comes amid a wave of firms adopting crypto treasury methods. Inspired by the success of Strategy, previously often known as MicroStrategy, dozens of companies exterior the crypto sector have introduced plans to boost capital particularly for Bitcoin purchases.
Crypto Treasury Craze Fuels $20 Billion Fundraising Wave
The development accelerated in early 2025 after a Trump administration govt order established a national strategic Bitcoin reserve. Since then, greater than 60 firms, from software program and gaming to biotech and power, have unveiled plans to place parts of their steadiness sheets into crypto.
Together, they’ve focused over $20b in fundraising by way of inventory choices, convertible debt and personal placements. The intention has been to hedge towards inflation, appeal to youthful traders and mirror the outsized good points seen by early movers.
However, inventory costs typically soared within the days earlier than bulletins, typically doubling or tripling. These unexplained strikes have raised questions on whether or not insiders leaked particulars or tipped traders, prompting regulators to behave.
Corporate Crypto Buys Spur Stock Surges, Draw SEC And FINRA Attention
Trump Media and Technology Group is among the many most high-profile instances. Ahead of its May 27 disclosure that it planned to raise $2.5b for a Bitcoin treasury, its shares posted per week of bizarre volatility.
The announcement pushed the agency into the ranks of the biggest company Bitcoin holders, alongside Strategy and Marathon Digital Holdings, however regulators shortly flagged suspicious buying and selling.
GameStop adopted an identical path. The retailer revealed a $500m Bitcoin buy on May 28, however its shares had already surged 40% within the three buying and selling classes earlier than the information. SEC officers are inspecting clustered purchase orders tied to firm distributors, whereas FINRA is reviewing dealer communications.
Biotech agency MEI Pharma additionally drew consideration in July when it introduced plans to allocate 1 / 4 of its money reserves to Litecoin. Its inventory practically doubled in 4 days main as much as the submitting, with unusually heavy name choice exercise. Investigators are reviewing whether or not investor briefings breached disclosure guidelines.
Debt-Funded Buybacks Signal Strain On Firms Chasing Crypto Gains
SharpLink Gaming, a small-cap advertising agency specializing in sports activities betting and that iGaming associates, made a significant shift into an Ethereum treasury technique in mid-2025. On May 28, its shares spiked roughly 433% during intraday trading, market information confirmed.
The craze for crypto treasuries that swept by way of small and mid-cap companies is already exhibiting cracks. Several firms that solely months in the past trumpeted crypto holdings at the moment are launching share buybacks, typically utilizing debt, to counter sliding inventory costs.
In some instances, market values have fallen under the price of the Bitcoin on their steadiness sheets. That hole alerts rising investor doubt about whether or not crypto treasury methods can ship long-term worth.
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