Nasdaq Restricts Crypto Treasury Funding, Stocks Plunge
Nasdaq plans to impose new rules on crypto treasury stocks. The major US exchange will require firms to secure shareholder approval before selling shares to raise funds for digital asset purchases. Companies that fail to comply risk trading suspension or delisting.
The announcement triggered a sell-off in crypto treasury names. Combined with a 2%–4% drop in bitcoin, ether and solana, treasury strategy stocks plunged. KindlyMD (NAKA) slid 16% and is down 80% since its August merger. American Bitcoin (ABTC) fell 20% after its Nasdaq debut. Metaplanet (MTPLF) dropped 8.6%, off 70% from its late-May peak. Bitmine Immersion (BMNR) lost 8.6% and Sharplink Gaming slid 10.5%. MicroStrategy (MSTR) held up better, down 1.8% and 30% below its mid-July high.
Nasdaq’s increased scrutiny and lower crypto prices signal renewed pressure on crypto treasury stocks. Traders should monitor shareholder votes and market volatility as they weigh the outlook for digital asset treasury strategies.
Bearish
Nasdaq’s move to require shareholder approval and threaten suspension or delisting directly raises the cost and complexity for crypto treasury strategies. Combined with a 2%–4% drop in major cryptocurrencies, this regulatory tightening has already triggered broad sell-offs in treasury stocks. Similar past events—such as increased SEC scrutiny on MicroStrategy before its price pullback—led to heightened volatility and further declines. In the short term, traders may face continued downward pressure as companies adjust or seek approvals. Long term, stricter listing rules could deter new treasury programs and limit upward catalysts for these stocks, reinforcing a bearish outlook.