Strategy shares fell 3.5% after The Information reported that Nasdaq is tightening its oversight of companies using fundraising to buy cryptocurrency.
According to the report, Nasdaq now requires some firms to get shareholder approval before issuing new shares for crypto acquisitions. This rule could slow the recent wave of businesses rebranding as crypto-focused stocks. The added oversight may delay deals and create uncertainty in the booming digital asset market.
Other crypto-related stocks were also hit. Bitmine Immersion dropped 8.7%, while SharpLink Gaming slid 9%. The broader market felt the impact too, with Bitcoin’s spot price slipping 2.5% during the session.
The report also noted that Nasdaq has the power to suspend trading or delist stocks if companies fail to comply. These measures follow what The Information called a “stunning transformation in crypto,” which gained momentum under the Trump administration as regulations eased.
This scrutiny comes at a critical moment. Many companies have been racing to accumulate tokens, hoping to position themselves as the go-to stock for certain cryptocurrencies. This strategy tends to work best in a rising market, meaning regulatory delays could prove costly.
With federal securities regulators stepping back, Nasdaq has become the key player enforcing listing rules and monitoring these high-risk transactions.
