Ethereum Treasury Firm SharpLink Confirms Compliance Amid Nasdaq Oversight
Highlights
- SharpLink clarified it does not need further shareholder approval to execute its ATM program for ETH purchases.
- The company said its strategy to raise capital remains unchanged and strictly accretive for shareholders.
- The update comes as Nasdaq tightens scrutiny on digital asset treasury firms.
SharpLink has reaffirmed its full compliance with Nasdaq rules, dismissing speculation about shareholder approval requirements. The update comes as the stock exchange tightens oversight of digital asset treasury firms that are racing to expand their crypto holdings.
Ethereum Treasury Firm Sharplink Confirms Nasdaq Compliance
SharpLink has reaffirmed its full compliance with Nasdaq regulations, directly addressing speculation surrounding shareholder approval requirements for digital asset treasury (DAT) companies.
This follows a CoinGape report that Nasdaq has stepped up its oversight over digital asset treasury firms. The stock exchange will require these firms to get shareholders’ approval before they can issue new shares to buy crypto.
In an X post, SharpLink clarified that it does not need additional shareholder approvals to execute its at-the-market (ATM) program for Ethereum (ETH) purchases. SharpLink emphasized that its capital-raising strategy remains unchanged and is designed to be accretive for shareholders, distancing itself from concerns raised in media reports about newer DATs facing heightened scrutiny.
The company stressed its rigorous approach to transparency, noting that all transactions align with Nasdaq standards and broader industry best practices. According to SharpLink, suggestions that its operations might fall under newly imposed shareholder approval requirements are inaccurate and do not apply to its structure.
Amid this regulatory backdrop, SharpLink continues to pursue its ambitious strategy for accumulating Ethereum. The company currently holds 837,230 ETH ($3.59 billion) and is the second-largest public Ethereum holder, behind Tom Lee’s BitMine.
BitMine Also Addresses Nasdaq Oversight Report
In a press release, BitMine also addressed the Nasdaq oversight report, noting that it is listed on the New York Stock Exchange (NYSE). The firm further stated that it can issue shares through its existing shelf registration without shareholder approval. It added that the existing at-the-market (ATM) program remains a registered bona fide public deal and does not require shareholder approval to continue.
Meanwhile, BitMine explained that the Nasdaq rule has been the existing guidance, relating to companies establishing crypto treasuries and accepting crypto in exchange for new shares. Companies that exceed 20% in an offering would require shareholder approval.
BitMine reiterated that this guidance doesn’t apply to them and that they have already secured NYSE approval through their PIPE transaction, which closed on July 8 earlier this year. BitMine is the largest public Ethereum holder, ahead of SharpLink and other ETH treasury companies. Tom Lee’s company continues to accumulate ETH at an unprecedented pace, with its latest purchase a $358 million buy yesterday.
The company currently holds 1.87 million ETH ($8 billion), according to Strategic ETH Reserve data. BitMine aims to acquire up to 5% of Ethereum’s total supply.
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