As Crypto Treasuries Grow, Regulators Hunt Leaks Behind Stock Surges

The U.S. Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) have launched an investigation into over 200 publicly traded companies suspected of insider trading related to corporate cryptocurrency treasury disclosures. The probe focuses on abnormal stock price surges and trading volumes observed before firms announced plans to allocate capital toward Bitcoin, Ethereum, or Solana acquisitions. Regulators flagged these patterns as potential violations of Regulation Fair Disclosure (Reg FD), which mandates equal access to material nonpublic informationOver 200 Firms Face SEC, FINRA Scrutiny Tied to Crypto-Treasury …^[1].

The scrutiny emerged after regulators identified "unusual trading activity" through market surveillance systems, including sharp stock gains of 20-40% in the days preceding crypto treasury announcements. For example, Bitmine’s stock surged from $4.67 to $46.58 in a week following its Ethereum acquisition disclosure, while SharpLink Gaming and Trump Media & Technology Group also saw significant pre-announcement price spikes. FINRA is examining broker-dealer communications for leaks, while the SEC is tracing trades to potential sources of nonpublic information200+ Corporate Crypto Treasury Firms Under Probe from SEC, …^[2].

Over 194 public companies now hold more than 1 million BTC ($110 billion) in their treasuries, with MicroStrategy leading holdings at 639,835 BTC. The corporate crypto rush has raised $100 billion in capital this year alone, creating a feedback loop where rising stock prices enable further crypto purchases, which in turn reinforce market confidence. However, the investigations highlight risks of selective disclosures and market manipulation, particularly for firms lacking robust compliance frameworksRegulators Intensify Scrutiny on Crypto Treasury Deals: Over 200 …^[3].

Companies under scrutiny include GameStop, MEI Pharma, and Mill City Ventures, where trading volumes spiked abnormally before disclosures. Former SEC enforcement lawyer David Chase noted that FINRA’s formal letters to firms are often the first step in investigations, signaling potential enforcement actionsOver 200 Firms Face SEC, FINRA Scrutiny Tied to Crypto-Treasury …^[1]. The probes could redefine corporate crypto strategies, impose compliance burdens, and erode investor trust in digital asset disclosures.

The regulatory crackdown reflects broader concerns about integrating crypto into traditional finance. While MicroStrategy and others have leveraged crypto treasuries for strategic gains, the investigations underscore the fragility of the "mNAV flywheel" model—where market value relative to net asset value drives capital raises. Regulators are tightening compliance thresholds, with FINRA establishing a dedicated "Crypto Hub" to monitor violations. The outcome may accelerate industry maturation, prioritize transparency, and reshape how firms execute crypto-related disclosuresRegulators Intensify Scrutiny on Crypto Treasury Deals: Over 200 …^[3].