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The Hong Kong Inventory Trade (HKEX) has rejected a number of makes an attempt by listed firms to make crypto treasuries their core enterprise.
That’s in accordance with a Bloomberg report that mentioned Hong Kong Exchanges & Clearing Ltd. has challenged the plans of a minimum of 5 such corporations in latest months. The story cited sources conversant in the matter, who mentioned that transitioning right into a pure-play crypto accumulator is at present forbidden by the bourse.
Firms Are Prohibited From Having Massive Liquid Holdings
The change is obstructing the functions as a part of a rule that prohibits corporations from holding giant reserves of liquid belongings, which is crypto on this case. The intention is to stop the itemizing of shell firms that successfully use their standing as a listed entity for cash.
The large DAT bubble deflating rapidly. Regulators’ flip to prick that bubble.
Earlier posts on the difficulty:https://t.co/KrIeFcEy5jhttps://t.co/jKbaesjxlk
“…In Hong Kong, if a publicly traded agency’s belongings are made up primarily of money or short-term investments, it’ll… pic.twitter.com/0P5wnkRD08
— itscorrekt (@itscorrekt) October 22, 2025
Based on HKEX, all itemizing functions should function “viable and sustainable” companies. So far, not one of the proposed DAT corporations have been given the inexperienced gentle by HKEX, the report mentioned.
Different Areas Are Additionally Blocking Crypto Treasury Companies
It’s not simply HKEX that’s clamping down on firms attempting to turn out to be digital asset treasury (DAT) corporations.
In Australia, ASX Ltd. has banned corporations holding 50% or extra of their steadiness sheet in money or cash-like belongings, which makes it inconceivable to undertake a crypto treasury mannequin.
In the meantime, the Bombay Inventory Trade rejected an utility from Jetking Infotrain to listing shares for a preferential allotment, which it mentioned it could use a few of the proceeds to put money into crypto.
DAT Companies Below Stress As Inventory And Crypto Costs Fall
The clampdowns come as DAT corporations face growing strain, with each share costs and the crypto belongings they hoard dropping worth.
The most important of the businesses and the pioneer of the DAT development is Michael Saylor’s Technique. It began shopping for Bitcoin again in 2020 and has since turn out to be the largest company holder of BTC, with 640,418 cash on its steadiness sheet, information from Bitcoin Treasuries reveals.
That’s after the agency introduced that it bought one other 168 BTC earlier this week for round $18.8 million at a median value of $112,051 per coin.
High 20 company BTC holders (Supply: Bitcoin Treasuries)
Since Technique began shopping for Bitcoin, different firms, reminiscent of Japan-based Metaplanet, have began doing the identical. There have additionally been firms which have stocked up on smaller cryptos, together with Ethereum. Bitmine Immersion Applied sciences and SharpLink Gaming are at present the largest ETH treasury corporations on this planet.
Nonetheless, all of these corporations have seen their inventory costs fall up to now month.
Technique’s shares have fallen over 10% whereas shares of Metaplanet and BitMine have plunged greater than 28% and 5%, respectively. SharpLink Gaming’s shares have slid greater than 13%.
Bitcoin has misplaced greater than 3% up to now month and Ethereum is down greater than 7%.
Buyers Lose $17 Billion Piling Into DATs
Buyers took successful from the decline in DAT share costs. A latest report from 10X Analysis discovered that buyers misplaced an estimated $17 billion by shopping for the corporations’ shares.
10X Analysis mentioned DAT corporations “conjured billions in paper wealth” by issuing shares that had been valued a lot increased than the underlying crypto they held.
“With NAVs now having absolutely round-tripped, retail buyers have misplaced billions — and plenty of seemingly lack the conviction to maintain including to their positions,” it mentioned. ”The phantasm vanished.”
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