Key Takeaways
- Nasdaq now requires shareholder approval before companies can issue new shares for crypto purchases.
- Non-compliant firms risk delisting or trading suspension, impacting the pace of crypto sector expansion.
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Nasdaq is requiring some companies seeking to issue new shares to fund crypto purchases to obtain shareholder approval in order to ensure investors understand the company’s strategy, The Information reported Thursday.
The new requirements come as more firms pivot to holding crypto on their balance sheets amid a pro-crypto push by the Trump administration. Many of these companies use complex structures and large funding rounds in the process, prompting Nasdaq to impose the rules to maintain market integrity and protect investors.
However, the shareholder vote may delay transactions and add uncertainty to the market’s crypto expansion. Nasdaq can suspend trading or delist companies that fail to comply.
According to Architect Partners, a crypto advisory firm, 124 US-listed companies have announced plans to raise over $133 billion for crypto purchases this year. Of these, 94 companies are listed on Nasdaq, compared to 17 on the New York Stock Exchange.
Companies are following the strategy of Michael Saylor’s firm, a software maker that has acquired $71 billion worth of Bitcoin over the past five years, transforming it into a popular stock.
The race to accumulate tokens has intensified as companies strive to become the primary stock for specific digital assets, with their success dependent on swift fundraising and share issuance capabilities.
Nasdaq’s move comes after the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) announced this week that registered US exchanges are permitted to list and facilitate the trading of certain spot crypto assets. The announcement, part of the SEC’s Project Crypto and the CFTC’s Crypto Sprint, is seen as an advance in regulatory support for the crypto market in the US.
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