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Investing.com -- Strategy shares declined 3.5% after The Information reported that Nasdaq is intensifying its scrutiny of companies attempting to boost their stock prices by raising funds to acquire cryptocurrency.
The report indicated that Nasdaq is now requiring certain companies to obtain shareholder approval before issuing new shares for crypto purchases, potentially slowing the recent trend of firms transforming themselves into crypto-focused stocks. This increased oversight could delay deals and introduce uncertainty into the market’s crypto boom.
Other crypto-adjacent stocks were similarly affected, with Bitmine Immersion declining 8.7% and SharpLink Gaming falling 9%. The broader crypto market also experienced downward pressure, with the spot price of bitcoin dropping 2.5% during the session.
According to the report, Nasdaq can delist stocks or suspend trading if companies fail to comply with these requirements. The exchange’s actions come amid what The Information describes as a "stunning transformation in crypto" that began during the Trump administration, which loosened regulations on cryptocurrency.
The timing of this regulatory scrutiny is particularly significant as companies have been racing to accumulate tokens quickly in hopes of becoming the preferred stock for specific cryptocurrencies. This strategy is most effective during rising crypto markets, making any regulatory delays potentially costly for companies pursuing this approach.
With federal securities regulators taking a step back, Nasdaq has emerged as the primary entity monitoring these transactions through enforcement of its own listing rules.