U.S. regulators are intensifying their scrutiny of stock price fluctuations linked to corporate announcements regarding cryptocurrency treasury strategies. The Wall Street Journal reported Thursday that both the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) have initiated inquiries into over 200 companies that publicly disclosed plans to raise funds specifically for cryptocurrency purchases this year.
According to sources, these investigations focus on potential breaches of Regulation Fair Disclosure (Reg FD), as unusual trading activity has been recorded prior to some of these companies announcing their intentions to invest in digital assets. The rash of companies entering the cryptocurrency market appears to have gained momentum following the notable success of MicroStrategy, which has inspired a slew of enterprises from various sectors—ranging from software to biotechnology—to allocate portions of their balance sheets to cryptocurrencies.
The crypto treasury trend significantly accelerated in early 2025, prompted by an executive order from the Trump administration that advocated for the establishment of a national strategic Bitcoin reserve. Consequently, over 60 different companies have revealed plans to secure more than $20 billion through stock offerings, convertible debt instruments, and private placements to hedge against inflation and attract younger investors. However, many of these companies have experienced dramatic spikes in stock prices days before their official announcements, some seeing price increases of up to 300%. This raises concerns regarding possible insider trading or unauthorized leaks of sensitive information, prompting investigative actions from regulators.
Among the companies under scrutiny is the Trump Media and Technology Group, which experienced notable volatility in its stock leading up to a May announcement of a $2.5 billion fundraise for a Bitcoin treasury. The abnormal trading activity prior to the announcement raised red flags for regulators, particularly as the firm now ranks among the largest corporate holders of Bitcoin.
Retail giant GameStop also encountered similar scrutiny after revealing plans to purchase $500 million worth of Bitcoin. The company saw its stock surge by 40% in the three days before the announcement, prompting SEC officials to track clustered buy orders associated with select vendors. Additionally, biotech firm MEI Pharma’s announcement to allocate a significant portion of its cash reserves to Litecoin was met with heavy trading activity, leading to a near doubling of its stock price in the days leading up to the disclosure.
While many firms are currently showcasing ambitious crypto treasury strategies, the trend is showing signs of strain. Small and mid-cap companies, which have led the recent craze for crypto purchases, are starting to initiate share buybacks—often financed through debt—in order to counteract declining stock values. In some examples, companies’ market valuations have dipped below the actual worth of their Bitcoin holdings, highlighting growing skepticism among investors regarding the long-term viability of these cryptocurrency strategies.
As regulators continue to evaluate the situation, the outcome of their inquiries could have lasting implications on how companies approach cryptocurrency investments and disclosures in the future.
