200 Firms Face Probes Over Suspected Leaks Behind Crypto-Linked Stock Surges

The U.S. Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) are investigating over 200 publicly traded companies for potential insider trading and violations of Regulation Fair Disclosure (Reg FD) tied to their crypto-treasury strategies. The probes focus on unusual trading patterns observed in the days or weeks before these firms announced plans to allocate capital for Bitcoin, Ethereum, or other cryptocurrencies. Regulators have identified sharp stock price surges and abnormal trading volumes in several cases, raising concerns about selective disclosures or leaks of nonpublic information.

The investigations, reported by the Wall Street Journal and Reuters, highlight a growing trend of public companies adopting crypto-treasury strategies—raising capital to purchase digital assets as a hedge against inflation or to replicate the success of firms like MicroStrategy. Over 200 firms have collectively raised more than $100 billion for crypto purchases in 2025. However, the SEC and FINRA are scrutinizing whether these disclosures adhered to Reg FD, which mandates equal access to material information for all investors. Regulators have sent formal letters to dozens of firms, warning against practices that could constitute market manipulation.

Examples of suspicious activity include Trump Media & Technology Group, GameStop, and SharpLink Gaming, whose stocks surged significantly before their crypto purchase announcements. In one case, Bitmine’s stock price jumped from $4.67 to $46.58 in a week following its Ethereum treasury plan, a 1,000% gain. Such volatility has prompted regulators to trace trades to potential leaks and examine broker-dealer communications for evidence of nonpublic information sharing. Former SEC enforcement lawyer David Chase noted that these letters often signal the “first step” in formal investigations.

The regulatory focus extends to the structural risks of corporate crypto treasuries. The “mNAV flywheel” model—where rising stock prices enable further crypto purchases, reinforcing market confidence—has been adopted by firms like MicroStrategy. However, this strategy becomes fragile if market value (mNAV) falls below 1, potentially triggering sell-offs and eroding trust. With over 194 public companies now holding more than 1 million BTC ($110 billion), the sector’s rapid growth has intensified scrutiny of compliance and transparency.

Legal experts warn that the probes could reshape corporate crypto strategies. Venture capitalist Mike Dudas described the situation as a “brewing bloodbath” requiring stricter enforcement to restore sector trust. Regulators are also examining whether insider trading laws were violated, particularly in cases where insiders or associates may have traded on leaked information. The investigations underscore the challenges of balancing innovation with market integrity in a sector marked by high volatility and evolving regulations.

Sources:

[1] title1 (https://finance.yahoo.com/news/over-200-firms-face-sec-141715311.html)

[2] title2 (https://coinpedia.org/news/200-corporate-crypto-treasury-firms-under-probe-from-sec-finra/)

[3] title3 (https://www.reuters.com/sustainability/boards-policy-regulation/us-regulators-probe-stock-moves-before-companies-made-crypto-treasury-2025-09-26/)

[4] title4 (https://cryptodnes.bg/en/sec-and-finra-probe-suspected-insider-trading-at-digital-asset-treasury-firms/)

[5] title5 (https://www.btcc.com/en-US/square/coincentral/1024112)

[6] title6 (https://coincentral.com/stock-surges-before-crypto-treasury-plans-spark-sec-and-finra-investigations/)

[7] title7 (https://dailycoin.com/us-regulators-scrutinize-stock-surges-ahead-of-corporate-crypto-bets/)