Key Takeaways:
Nasdaq will strengthen oversight of listed companies using stock sales to buy crypto assets.
Some firms must now seek shareholder approval before raising funds for crypto purchases.
The move targets transparency and risk control amid volatility and dilution concerns.
Nasdaq is preparing to impose stricter rules on public companies that adopt crypto treasury strategies, according to ChainCatcher. The exchange is concerned that some firms are issuing new shares to purchase digital assets in ways that could inflate their stock prices.
Under the new measures, companies may be required to obtain shareholder approval before using additional equity financing to acquire cryptocurrencies. Nasdaq is also tightening its role as a market gatekeeper, applying listing rules to demand greater transparency and accountability.
The goal is to reduce volatility risks linked to large crypto holdings and limit the impact of shareholder dilution when firms repeatedly issue stock to fund Bitcoin or altcoin purchases.