SEC and FINRA Investigate Stock Movements Tied to Crypto Treasury Disclosures

US regulators are stepping up scrutiny of stock market activity tied to the growing wave of corporate crypto treasury strategies.

According to a report from the Wall Street Journal, both the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) are reviewing unusual trading patterns in the days leading up to several companies’ announcements of Bitcoin and other crypto purchases.

Suspicious swings before disclosures

The investigation centers on whether material non-public information was improperly shared before firms made their crypto treasury plans public. Officials have reportedly contacted a number of the more than 200 companies that announced such strategies in 2025, warning about potential breaches of disclosure rules.

The boom in corporate crypto treasuries accelerated earlier this year after the Trump administration issued an executive order establishing a national Bitcoin reserve.

That policy spurred over 60 companies, spanning sectors from gaming and software to energy and biotech, to earmark funds for digital asset holdings. Collectively, these firms have raised more than $20 billion through offerings and private placements to finance their purchases.

But sharp stock moves ahead of those announcements have raised concerns. For example, shares of Trump Media and Technology Group were volatile in the week before its May 27 disclosure of a $2.5 billion Bitcoin allocation.

GameStop’s stock surged 40% in the three sessions before revealing a $500 million buy on May 28. Biotech firm MEI Pharma also drew attention after its shares nearly doubled ahead of news that it would allocate reserves to Litecoin, accompanied by a spike in call option activity.

Regulators are now examining whether leaks or selective communications influenced these rallies.

Pressure on firms chasing crypto gains

While the trend has captured investor attention, not all outcomes have been positive. Some companies that pivoted aggressively into crypto are now under strain as their stock prices fall below the value of the assets on their balance sheets.

To manage this pressure, several have resorted to debt-funded share buybacks, signaling the risks of over-reliance on volatile markets.

One example is SharpLink Gaming, which pursued an Ethereum treasury strategy earlier this year. Its shares spiked more than 400% in a single day before settling lower, reflecting the volatility surrounding such moves.

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