Strategic stocks fell 3.5% after Nasdaq revealed that it was beginning to scrutinize how companies raise funds for cryptocurrency purchases.
According to the information, the stock market now requires that some companies obtain shareholder approval before issuing new shares to purchase cryptocurrency. This could slow down the recent trends in crypto-centric companies.
Increased scrutiny led to delays in trading and increased market uncertainty, but other crypto stocks were also negatively affected. Bitmine Immersion fell by 8.7% and Sharplink Gaming fell by 9%. Bitcoin spot prices also fell 2.5% during the session.
The report said companies that do not comply with the regulations could ban or be repealed from trading from the NASDAQ exchange. The move follows what information is described as “a dramatic transformation in the crypto market that began with the Trump administration.”
Companies are trying to attract investors’ interest by launching stocks related to specific cryptocurrencies. This strategy is particularly effective in emerging markets, but regulatory delays pose costly risks for businesses. While federal securities regulators took the back seat, Nasdaq became the main regulator with its own listing rules.
*This is not investment advice.
