Nasdaq Tightens Grip on Crypto Treasury Oversight - What This Means for Public Companies
Wall Street's tech-heavy exchange just turned up the heat on crypto treasury management.
Nasdaq's new oversight framework targets public companies holding digital assets—demanding stricter reporting, enhanced risk controls, and transparent disclosure protocols. No more flying under the radar with your Bitcoin reserves.
Active Monitoring Now Mandatory
The exchange will require real-time auditing of cryptocurrency holdings and quarterly stress tests for treasury portfolios. Companies must prove they're not gambling shareholder money on meme coins—though some probably wish they could.
Institutional Adoption Meets Accountability
This isn't about stifling innovation—it's about preventing the next 'oops we lost the private keys' moment from hitting earnings reports. Because nothing says 'mature asset class' like having to explain to regulators why your treasury dipped 40% during a Twitter feud.
The move signals crypto's inevitable march toward mainstream legitimacy, even if it means enduring the same bureaucratic hoops as traditional finance—because what's revolution without a little paperwork?
Nasdaq places stricter oversight on public crypto treasuries
Nasdaq is strengthening its grip on companies that try to boost stock performance through fundraising aimed at crypto acquisitions, according to a report from The Information on Thursday.
The exchange now requires some firms to secure shareholder approval before issuing new equity to fund their crypto reserves. The report added that Nasdaq may delist stocks or suspend trading if a company fails to comply with these new requirements.
Market experts speculate that the rule could slow the momentum of companies repositioning toward crypto-focused treasuries. Others added that the requirement of shareholder approval could discourage further crypto exposure.
Crypto treasuries often prioritize share offerings as a way to raise capital for additional coin purchases, a model pioneered by Strategy (MSTR). The companies often see their shares rebound sharply after pivoting to crypto, reversing previous struggles.
The trend follows a rise in regulatory clarity for the crypto industry, as The Information has tagged it a "stunning transformation in crypto." It also coincides with a growing wave of companies pivoting toward crypto treasuries since January, with interest expanding past just Bitcoin (BTC) into altcoins.
Approximately 184 public companies have revealed plans to raise more than $132 billion for crypto purchases, according to Bloomberg, citing crypto advisory firm Architect Partners. Notably, a majority of these public crypto treasuries are listed on the Nasdaq.
The report triggered declines in the stocks of many public crypto treasuries, highlighting investor fears about the potential impact of the new listing rule.
Shares of major crypto treasuries, including Strategy, BitMine, American Bitcoin, SharpLink Gaming and DeFi Development Corp, closed the day with losses.
