Happy Friday! Eric here. 

Crypto treasury companies floundered on the stock market over the past 24 hours. 

Heavyweights, such as Strategy, Metaplanet, and BitMine fell around 4%, 5%, and 7%, respectively. 

The plunge came after The Information reported that the American stock exchange will ramp up its oversight of US-listed crypto treasury companies.

Subsequent media reports suggested that the Nasdaq has begun to require shareholder votes for some deals and more disclosures.

On the back of those media reports, BitMine, the Ethereum treasury company run by Fundstrat’s Tom Lee, also issued a statement that said the Nasdaq’s existing guidance has been to require “companies to get shareholder approval before issuing new shares to buy crypto” for a long time.

The Nasdaq declined a request for comment.

Crypto treasuries have become one of the hottest trends this year, with over 230 companies holding Bitcoin, according to Bitcoin Treasuries.

Other firms have become treasuries for everything from Ethereum to US President Donald Trump’s memecoins.

The idea is simple: buy a cryptocurrency, obtain a public corporate wrapper, and encourage traders to use your stock as a crypto proxy. Rinse and repeat. 

It’s a recipe for success pioneered by Strategy, Michael Saylor’s software-turned-Bitcoin-treasury company.

Crypto treasury companies’ stockmarket plunge came as doubts are rising about the viability of these firms. 

Since May, many of those firms have begun to trade below the value of the crypto assets they hold, which could lead to them having to sell off their assets to pay back their debt, as Pedro Solimano and Kyle Baird reported in August.

Trump’s $4.1bn WLFI windfall throws coming crypto regulation into doubt

Trump got elected on a pro-industry platform and the promise of new, industry friendly laws. However, his own forays into the industry may make that push more difficult, Tim Craig and Liam Kelly reported.

Kraken’s Breakout deal is just the start as crypto M&As seen to soar to $30bn as number of deals double in 2025

The number of crypto acquisitions is set to surge in 2025 thanks to friendlier regulations and the embrace of Wall Street, Lance Datskolou reported.

Trump boys’ American Bitcoin mining company hits a rocky start

American Bitcoin, the Trump family’s new mining company, suffered several halts within its first hour of trading on the Nasdaq, Pedro Solimano reported.

Post of the Week

The US Securities and Exchange Commission, and the Commodity Futures Trading Commission announce plans to “harmonise” rules about securities and non-securities. Yes, that means crypto too.

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