Nasdaq Tightens Oversight of Listed Digital Asset Treasury Companies

Nasdaq is ramping up oversight of publicly listed companies that hold significant amounts of cryptocurrency, a move the exchange frames as investor protection. This comes amid an influx of new crypto treasury companies, which look to replicate a model that Michael Saylor’s Strategy first began.

Nasdaq Introduces New Rule For Crypto Treasury Companies

According to a report from the Information, the stock exchange has stepped up its scrutiny of companies that are loading up on crypto and using it as their primary reserve asset. As part of the new oversight, Nasdaq has directed these companies to obtain shareholders’ approval before issuing new shares to fund crypto purchases.

This requirement ensures that shareholders understand the crypto treasury strategy and its potential impact on the company, both positively and negatively. This development comes as more digital asset treasury companies continue to spring up, issuing shares to accumulate these crypto assets.

These companies have expanded beyond Bitcoin and Ethereum, focusing on other crypto assets, including Solana, XRP, BNB, HYPE, Toncoin, and Dogecoin, among others. One of the most recent crypto treasury companies includes Portage Biotech, which has rebranded to AlphaTON Capital and launched a $100 million TON treasury.

Bitcoin and Ethereum Treasury Companies Still Lead The Way

The Bitcoin and Ethereum treasury companies are still the most dominant ones. BitcoinTreasuries data shows that there are currently over 100 public Bitcoin treasury companies, led by Michael Saylor’s Staretgy.

Strategy currently holds 636,505 BTC following its latest $444 million Bitcoin purchase. It is worth noting that Saylor’s company kick-started the crypto treasury model long before now, as they began buying BTC in 2020. These Bitcoin treasury companies currently hold a cumulative total of just over 1 million BTC.

Meanwhile, Strategic ETH Reserve data shows that there are 71 Ethereum treasury companies. These companies hold a total of 4.71 million ETH ($20.27 billion), which accounts for 3.89% of Ethereum’s total supply. The largest public Ethereum holder is Tom Lee’s BitMine, which currently holds 1.87 million ETH.

Notably, Strategy, BitMine, and some other crypto treasuries recorded notable drops in their stock prices following the revelation of this new Nasdaq requirement. TradingView data shows that the Strategy stock is down over 2% today, trading at around $322.

Meanwhile, the stocks of Ethereum treasury companies BitMine and SharpLink dropped as much as 8.7% and 9% on the day. However, it is worth mentioning that this development also coincides with the drop in the crypto market, with Bitcoin, Ethereum, and other major assets recording significant declines.