Over 200 Corporate Crypto Treasury Firms Being Investigated by SEC and FINRA

U.S. regulatory agencies, such as the SEC and FINRA, are honing in on the activities of corporate crypto treasuries, setting their sights on more than 200 companies that hold cryptocurrencies in their reserves. The Wall Street Journal reported that these investigations were triggered by irregular stock movements that raised suspicions of potential insider trading.

The crux of the matter lies in the unusually sharp spikes in stock prices and trading volumes observed just before companies made significant cryptocurrency acquisitions public. This behavior strongly suggests that some investors may have had access to confidential information, violating the Fair Disclosure Rule (Reg FD), which prohibits the selective disclosure of data that could affect market movements.

Although the names of specific companies have not been disclosed, authorities have cautioned that practices such as selective communication or delayed disclosures to shareholders could constitute market manipulation. These suspicions have thrown a shadow over the corporate rush to embrace crypto assets, with 194 public companies now collectively holding over 1 million BTC, totaling more than $110 billion, which is approximately 4.6% of Bitcoin’s total supply.

Leading the charge is Michael Saylor’s Strategy, boasting 639,835 BTC valued at around $70 billion, followed closely by Marathon Digital and Twenty One Capital. Strategy itself has made significant moves in the crypto space, acquiring 850 BTC for roughly $99.7 million, with an impressive BTC yield of 26.0% year-to-date in 2025. As of September 21, 2025, they continue to hold their BTC, acquired for approximately $47.33 billion at $73,971 per bitcoin.

Following Strategy’s success, other companies are keen to emulate their strategy, viewing digital assets as a means to hedge their balance sheets and potentially replicate the substantial gains witnessed since 2020. However, concerns have been raised about potential insider trading practices. Stock price surges in companies like SharpLink Gaming and MEI Pharma just ahead of major cryptocurrency purchase announcements have raised eyebrows. In light of these developments, venture capitalist Mike Dudas has warned of a potential crisis brewing and has called for swift SEC action to restore faith in the sector.

The functioning of corporate crypto treasuries often hinges on the mNAV mechanism, which gauges market value relative to net asset value. When mNAV is on the rise, companies can capitalize on this to acquire more crypto, creating a positive loop where a higher stock price leads to increased funding, more crypto holdings, stronger market confidence, and ultimately a soaring stock price. However, this system is susceptible to volatility. If mNAV dips below 1, there is a risk of triggering sell-offs and eroding confidence.

In response to these challenges, regulators are intensifying their oversight, imposing higher issuance thresholds, and implementing measures to curtail opportunities for manipulation within the corporate crypto treasury space.