Nasdaq Requires Vote for Crypto-Funded Share Issuances
Nasdaq has introduced new crypto rules requiring public companies to obtain shareholder approval before issuing shares to fund cryptocurrency purchases. The regulation covers 124 US firms planning to raise $133 billion for token acquisitions, including 94 Nasdaq-listed companies. Non-compliance risks suspension or delisting, reinforcing market integrity and investor protection.
Initial reactions saw crypto stocks tumble—strategy shares fell up to 3.5%, BitMine Immersion dropped nearly 9%, SharpLink Gaming plunged 11%, and Ethzilla slid as much as 15% before narrowing losses. Bitcoin fell 2.5% to $109,500, Ethereum dropped over 3% to $4,300, and Solana retreated 3.5% to around $204, contributing to a 2.2% decline in total market cap to $3.8 trillion.
Observers warn that the added shareholder vote could delay financing, slowing token accumulation by companies emulating MicroStrategy’s strategy and damping momentum in small-cap tokens. Traders view the Nasdaq crypto rules as a bearish signal for crypto stocks and digital assets, potentially curbing institutional interest.
Bearish
The requirement for shareholder votes before issuing shares to buy crypto raises significant hurdles for corporate crypto acquisitions, likely delaying or reducing new purchases. Immediate sell-offs in crypto stocks and price drops in BTC, ETH, and SOL indicate weaker buying pressure. In the short term, firms must navigate extra approval steps, triggering market volatility. Over the long term, slower institutional accumulation may undermine momentum in digital assets and small-cap tokens, sustaining a bearish outlook.