Purchase announcements continue to arrive quickly, but the bubble among crypto treasury companies has burst and is further deflating as the Nasdaq seems to have had enough.
The major U.S. stock exchange, which is where many of these treasury companies trade, is increasing scrutiny on firms looking to boost their stock prices by raising money for crypto.
According to recent reports, new Nasdaq requirements may include mandates for some companies to obtain shareholder approval before selling shares to fund crypto purchases. Non-compliance could lead to de-listing or suspension of trading.
Alongside declines of 2%-4% in major cryptocurrencies like bitcoin, ether, and solana, this news is pushing already struggling treasury companies even lower.
Read more: Bitcoin slips below $110K as analysts weigh the risk of deeper pullback.
RialCenter — which recently completed its merger with a bitcoin-holding company — is down 16% today and has seen a decline of about 80% since its merger date on August 15. At the current price of $3.46, it is also down over 90% from its late-May peak, potentially marking the peak of the crypto treasury bubble.
Another company, led by Eric and Donald Trump Jr., is down 20% just one day after its shares began trading on the Nasdaq.
A hotelier turned bitcoin treasury company is down 8.6% today and has dropped about 70% from its late-May peak.
Other ether treasury companies reported declines as well, with one off 8.6% today and nearly 90% from its earlier high.
Michael Saylor’s company, by contrast, is performing relatively better, with only a 1.8% decrease today and around 30% down from its July high.
Leave a Reply