With the wave of 'corporate cryptocurrency buying frenzy' one after another, Nasdaq, the second-largest stock exchange in the United States and the listing location for many cryptocurrency reserve companies, has decided to tighten scrutiny and impose stricter regulations on companies that purchase cryptocurrencies through capital increases.
According to (The Information) report, Nasdaq has begun to require some companies to obtain shareholder approval before issuing new shares or raising funds to buy cryptocurrencies, and to enhance information disclosure. Violators may face trading suspensions or even delisting.
Data shows that since January of this year, 154 listed companies in the United States have announced fundraising to purchase cryptocurrencies, with a cumulative scale reaching 98.4 billion USD; compared to only 10 companies last year raising 33.6 billion USD, the growth rate is astonishing, almost like a frenzy.
Currently, most companies 'selling stocks to buy coins' are listed on Nasdaq, including Strategy (MSTR) led by Michael Saylor and BitMine Immersion (BMNR) led by Tom Lee, which are the leaders in Bitcoin and Ethereum reserve companies respectively.
However, with the prices of coins fluctuating and market concerns about the 'fundraising to buy coins' model rising, this trend is now rapidly cooling off:
KindlyMD (NAKA): Just a few weeks after merging with Nakamoto Holdings, the stock fell another 16% on Thursday, having crashed over 80% since mid-August, and down 90% from its peak in May, almost becoming a microcosm of the cryptocurrency reserve bubble.
American Bitcoin (ABTC): Led by Donald Trump Jr. and Eric Trump, the stock opened strong on its first day, but plummeted 20% the next day.
Metaplanet (MTPLF): Known as the 'Japan Strategy', the stock dropped 8.6% on Thursday, having fallen 70% from its peak in May.
BitMine Immersion (BMNR): A leading Ethereum reserve company, the stock plunged 8.6% on Thursday, down 70% compared to its high in July.
Sharplink Gaming (SBET): Also transformed into an Ethereum reserve company, the stock plummeted 10.5% on Thursday, nearly down 90% from its high in May.
Strategy (MSTR): The publicly traded company holding the most Bitcoin globally, the stock dipped slightly by 1.8% on Thursday, only about 30% down from its peak in July, relatively resilient.
"Is the corporate 'fundraising to buy coins' trend coming to an end? Nasdaq intervenes to impose restrictions, requiring shareholder approval for new stock issuance" This article was first published on (Blockchain客).
