US Regulators Examine Trading Patterns Before Firms Announced Crypto Treasury Holdings: Report

Core Insights - US regulators are investigating unusual stock price movements prior to companies announcing plans to raise funds for crypto treasury purchases [1][4] - The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) are scrutinizing over 200 firms that have adopted crypto treasury strategies this year [1][2] Group 1: Regulatory Scrutiny - Officials have warned companies about potential breaches of rules against selectively sharing material non-public information [2] - The investigation is prompted by significant stock price increases before announcements, raising concerns about insider trading [4][5] Group 2: Fundraising Trends - More than 60 companies have announced plans to allocate portions of their balance sheets to crypto, targeting over $20 billion in fundraising through various methods [3][4] - The trend has been fueled by a national strategic Bitcoin reserve established by a Trump administration executive order [3] Group 3: Case Studies - Trump Media and Technology Group experienced unusual stock volatility before announcing a $2.5 billion Bitcoin treasury plan [5] - GameStop's shares surged 40% before its $500 million Bitcoin purchase announcement, leading to SEC investigations into clustered buy orders [6] - MEI Pharma's stock nearly doubled in four days prior to its announcement of allocating cash reserves to Litecoin, prompting reviews of investor briefings [7]