US regulators are investigating sharp swings in stock prices before companies revealed plans to raise funds for crypto treasury purchases, the Wall Street Journal reported on Thursday.
The Securities and Exchange Commission and the Financial Industry Regulatory Authority have contacted some of the more than 200 firms that announced crypto treasury strategies this year, sources told the Journal.
Officials warned companies about possible breaches of rules against selectively sharing material non-public information.
The scrutiny comes amid a wave of companies adopting crypto treasury strategies. Inspired by the success of Strategy, formerly known as MicroStrategy, dozens of firms outside the crypto sector have announced plans to raise capital specifically for Bitcoin purchases.
The trend accelerated in early 2025 after a Trump administration executive order established a national strategic Bitcoin reserve. Since then, more than 60 companies, from software and gaming to biotech and energy, have unveiled plans to put portions of their balance sheets into crypto.
Together, they have targeted over $20b in fundraising through stock offerings, convertible debt and private placements. The aim has been to hedge against inflation, attract younger investors and mirror the outsized gains seen by early movers.
However, stock prices often soared in the days before announcements, sometimes doubling or tripling. These unexplained moves have raised questions about whether insiders leaked details or tipped investors, prompting regulators to act.
Trump Media and Technology Group is among the most high-profile cases. Ahead of its May 27 disclosure that it planned to raise $2.5b for a Bitcoin treasury, its shares posted a week of unusual volatility.
The announcement pushed the firm into the ranks of the largest corporate Bitcoin holders, alongside Strategy and Marathon Digital Holdings, but regulators quickly flagged suspicious trading.
GameStop followed a similar path. The retailer revealed a $500m Bitcoin buy on May 28, but its shares had already surged 40% in the three trading sessions before the news. SEC officials are examining clustered buy orders tied to company vendors, while FINRA is reviewing broker communications.
Biotech firm MEI Pharma also drew attention in July when it announced plans to allocate a quarter of its cash reserves to Litecoin. Its stock nearly doubled in four days leading up to the filing, with unusually heavy call option activity. Investigators are reviewing whether investor briefings breached disclosure rules.
SharpLink Gaming, a small-cap marketing firm specializing in sports betting and iGaming affiliates, made a major shift into an Ethereum treasury strategy in mid-2025. On May 28, its shares spiked roughly 433% during intraday trading, market data showed.
The craze for crypto treasuries that swept through small and mid-cap firms is already showing cracks. Several companies that only months ago trumpeted crypto holdings are now launching share buybacks, often using debt, to counter sliding stock prices.
In some cases, market values have fallen below the worth of the Bitcoin on their balance sheets. That gap signals rising investor doubt about whether crypto treasury strategies can deliver long-term value.
