How Nasdaq spooked Strategy and crypto treasury stocks
Strategy (formerly MicroStrategy), along with the rest of the crypto treasury industry, got spooked last week after Nasdaq issued new rules about selling stock to buy digital assets. Unlike traditional enterprises that aim to profit by selling goods or services, crypto treasury companies primarily buy crypto on leverage by selling corporate debt, equities, and derivatives. Exchange officials are looking to tighten listing requirements for such companies. Indeed, moments before the New York market opened on Thursday morning, TheInformation reported that the Nasdaq was considering forcing companies to obtain shareholder approval prior to selling stock to buy digital assets. Stocks of treasury companies like Strategy immediately traded lower on the news due to uncertainty around whether they had been obtaining shareholder approval for their dilutive capital raises. Although Nasdaq didn’t immediately confirm TheInformation’s report, many treasury company executive...