US regulators are investigating a sharp swing in stock prices before companies reveal plans to raise funds for the Cryptocurrency Department’s purchases, The Wall Street Journal reported Thursday.
The Securities and Exchange Commission and financial industry regulators have contacted some of the more than 200 companies that announced their cryptocurrency strategies this year, sources told the Journal.
Authorities warned businesses about possible violations of the rules for selective sharing of information other than materials.
Scrutiny comes amidst a wave of companies adopting the Cryptocurrency strategy. Inspired by the success of a strategy previously known as MicroStrategy, dozens of companies outside the Crypto sector have announced plans to raise capital specifically for purchasing Bitcoin.
Crypto Treasury Craze burns $20 billion in funding wave
This trend accelerated in early 2025 after the Trump administration’s executive order established a national strategic Bitcoin reserve. Since then, more than 60 companies, from software and gaming to biotechnology and energy, have announced plans to put some of their balance sheets into crypto.
Together, they aim to raise more than $200 billion in funding through stock offerings, convertible debts and private placement. The aim was to hedge inflation, attract young investors, and reflect the great benefits seen in early invokers.
However, the stock price skyrocketed in the days before the announcement, sometimes doubling or tripling. These unexplained movements raised questions about whether insiders leaked details or were leaning investors in, prompting regulators to act.
Corporate Crypto buys surges and attracts attention from SEC and FINRA
Trump Media and Technology Group are one of the most well-known cases. The shares posted an extraordinary week of volatility as they planned to raise $2.5 billion from Bitcoin’s Treasury Department ahead of the May 27 disclosure.
The announcement pushed the company into the ranks of the largest corporate Bitcoin holders along with Strategy and Marathon Digital Holdings, but regulators quickly flagged suspicious transactions.
GameStop followed a similar path. The retailer revealed $500 million in Bitcoin purchases on May 28th, but its stock had already spiked 40% in the three previous trading sessions of the news. SEC officials are investigating clustered purchase orders related to company vendors, while FINRA reviews broker communications.
Biotechnology company Mei Pharma attracted attention in July when it announced plans to allocate a quarter of its cash reserve to Litecoin. That stock almost doubled in the four days leading up to filing, with unusually heavy call option activity. Investigators are considering whether investor briefings violated disclosure rules.
Debt-funded buybacks signal tensions against businesses chasing crypto profits
Sharplink Gaming, a small cap marketing company specializing in sports betting and IGAMING affiliates, made a major shift to its Ethereum financial strategy in mid-2025. On May 28, the stock jumped around 433% during intraday trading, market data showed.
The Cryptocurrency epidemic that swept small and medium-sized businesses and intermediate companies has already shown a crack. Several companies that trumpeted Crypto Holdings just a few months ago have now begun stock buybacks, which often use debt to combat the stock price.
In some cases, the market value is below the value of Bitcoin on the balance sheet. This gap shows investors are rising in terms of whether cryptocurrency strategies can deliver long-term value.
US regulators look at trading patterns before companies announce Crypto Treasury Holdings.
