High-Stakes Crypto-Treasury Strategies Put Over 200 Public Companies Under Investigation for Trading Abnormalities

US Regulators Investigate Over 200 Firms for Crypto-Treasury Insider Trading

Federal authorities are turning a sharp eye on more than 200 publicly traded companies that have adopted cryptocurrencies as part of their corporate treasuries.

The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) are reportedly examining unusual spikes in stock prices and trading volumes immediately before these firms announced digital asset purchases.

High-Volume Trades Raise Alarms Over Possible Leaks

According to reports, regulators noticed steep gains in company shares that coincided with forthcoming crypto-treasury announcements.

While the names of the companies remain undisclosed, the pattern has drawn scrutiny, as selective sharing of non-public information could give insiders and preferred investors an unfair trading edge.

The SEC has cautioned firms about potential breaches of Regulation Fair Disclosure (Reg FD), which forbids giving certain investors advance access to material information that could affect stock prices.

Corporate Crypto Strategies Mirror MicroStrategy Playbook

Many companies appear to follow the aggressive model popularised by MicroStrategy, which has accumulated over $60 billion in Bitcoin since 2020.

Firms frequently raise capital privately, often through debt instruments like convertible bonds, to fund large crypto acquisitions.

This “flywheel” approach can inflate stock prices, allowing firms to raise more funds in successive rounds, creating a self-reinforcing cycle.

However, these gains can be fragile.

Cases such as Peter Thiel-backed 180 Life Sciences, which temporarily rebranded to ETHZilla, saw stock prices surge from under $5 to over $16 after announcing Ethereum purchases, only to drop back shortly after.

SharpLink Gaming, holding $3.7 billion in ETH, announced a $1.5 billion buyback programme while its market valuation fell below the digital assets it held.

These examples suggest that hype-driven strategies can backfire.

Regulatory Scrutiny Intensifies Amid Rising Corporate Crypto Adoption

Data from crypto advisory firm Architect Partners shows that 212 companies made digital asset treasury announcements in 2025 alone, collectively promising around $102 billion for crypto acquisitions.

Regulators are reportedly issuing formal letters to more than 200 companies to assess compliance with Reg FD, signalling early-stage investigations that could escalate into full enforcement actions if evidence of selective disclosure or insider trading emerges.

While the SEC and FINRA primarily enforce civil penalties, violations can result in fines up to $500,000 per incident, and individuals involved may also face personal sanctions.

Past cases, such as AT&T’s 2022 settlement over Reg FD violations, illustrate the seriousness of selective disclosure.

Could Crypto-Treasury Strategies Be a Regulatory Minefield?

Coinlive notes that the surge in stock prices preceding crypto-treasury announcements may indicate more than market excitement.

Leaks or selective disclosures could signal structural weaknesses in how companies execute these high-risk strategies.

The SEC and FINRA’s focus suggests that without stricter internal controls, firms could face penalties that outweigh potential gains from crypto holdings.

While the strategy promises fast capital growth and market attention, the pitfalls of inflated expectations, stock volatility, and regulatory exposure are increasingly visible.

For firms chasing rapid expansion through digital assets, the true test may not be market timing, but the ability to manage compliance, transparency, and investor trust in an unpredictable environment.