American regulators would have investigated more than 200 companies with cryptographic treasury bills on the initiate’s offense.
The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) raised concerns after having observed unusual negotiation volumes and current price gains in the days preceding the announcements of companies.
A regulatory sweep
Recent reports have revealed that federal regulators are now examining more than 200 companies that have adopted crypto purchases as a business basic strategy, faced with initiate negotiation allegations.
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Although the specific names of companies were not disclosed, the news has surfaced while more and more companies adopt an aggressive game book inspired by microstrategy for the accumulation of crypto. The dry would have launched these investigations after observing a notable negotiation volume and the share price on public announcements.
To follow this, the regulator warned companies, warning them specifically against the violation of the fair disclosure of the regulations. This rule prohibits selectively sharing non -public information with certain investors who could use it for trading.
When companies finance major cryptocurrency in private purchases by hiring external investors, they demand that these investors sign non-disclosure agreements. However, clear points in the share of the company immediately before the public announcement suggest that this confidentiality has been broken.
The corporate cryptography game book
Coingecko data show that 108 companies currently have Bitcoin. However, these corporate treasury bills have extended beyond Bitcoin to include altcoins such as Ethereum, Solana and Litecoin in recent months.
Many companies use a “steering wheel” strategy by raising capital via debt and equity to finance purchases of massive cryptography. Since these financing and purchase plans are very sensitive and non -public, any premature disclosure offers a major commercial advantage.
The steering wheel model uses capital – raised very well thanks to cheap debt as convertible obligations – to buy large amounts of crypto. This increases the company’s share price because investors treat actions as an enlarged means of betting on the growing value of the crypto.
This higher stock market course, in turn, allows the company to remove more capital for the next crypto purchase series, creating a high -effect feedback loop. Any leak on an increase or purchase of imminent capital immediately affects this sensitive mechanism.
