Nasdaq has introduced stricter rules for companies seeking to issue new shares to fund cryptocurrency purchases, reflecting the evolving landscape of corporate treasury strategies. With more firms moving to hold crypto assets on their balance sheets, Nasdaq now requires shareholder approval before a company can issue new shares specifically for acquiring cryptocurrencies.

This change aims to bolster transparency and ensure that investors fully understand the risks and direction of the company’s treasury policy. The requirement for a shareholder vote may introduce delays to companies looking to rapidly expand their crypto holdings, and could slow the pace at which publicly traded firms can enter the crypto market.

Companies that fail to obtain shareholder approval risk suspension of trading or even delisting from the exchange. These developments are occurring at a time when many businesses have adopted the strategy of aggressively acquiring large amounts of crypto, following in the footsteps of high-profile firms that have seen their stock prices surge through major digital asset purchases.

Nasdaq’s move follows a significant increase in both the number and the scale of public companies raising funds for crypto accumulation. Notably, the exchange’s new oversight arrives shortly after regulators like the SEC and CFTC announced updated guidelines allowing registered exchanges to list and facilitate trading in certain spot crypto assets.

As the race intensifies for companies to become dominant players in the digital asset space, Nasdaq’s tighter controls underscore the need to balance innovation and investor protection in the rapidly evolving crypto treasury market.