The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) are probing unusual trading activity that occurred before companies announced plans to acquire digital assets for their treasuries. This investigation stems from a review of over 200 firms that disclosed crypto treasury strategies in 2025, with regulators flagging a subset for sharp stock price swings and heavy volume ahead of announcements.
According to reports, the outreach is preliminary and focuses on potential violations of Regulation Fair Disclosure (Reg FD), which prohibits selective sharing of material non-public information. Specific cases under scrutiny include Trump Media and Technology Group, whose shares showed volatility before a May 27 disclosure of a $2.5 billion Bitcoin treasury plan, and GameStop, where stock surged 40% in three sessions prior to a $500 million Bitcoin buy announcement. Other examples are MEI Pharma, which allocated cash to Litecoin with a near-doubling of its stock, and SharpLink Gaming, which saw a 433% intraday spike before shifting to an Ethereum strategy.
The trend, inspired by MicroStrategy's model, has led to more than $20 billion in targeted fundraising for crypto treasuries across various sectors. However, observers caution that poorly timed moves risk appearing gimmicky and could expose firms to forced liquidations.