Hong Kong Stock Exchange Cracks Down on Crypto Treasuries

The Hong Kong Stock Exchange (HKEX) has rejected several attempts by listed companies to make crypto treasuries their core business.

This is according to a Bloomberg report according to which Hong Kong Exchanges & Clearing Ltd. has challenged the plans of at least five of these companies in recent months. The article cites sources close to the matter, who said thatThe transition to an outright crypto accumulator is currently prohibited by the exchange.

Companies are prohibited from holding large amounts of cash

The exchange blocks the apps as part of a rule prohibiting companies from holding large reserves of liquid assets, which are cryptocurrencies in this case. The aim is to prevent the listing of shell companies that effectively use their listed entity status to obtain money.

The gigantic DAT bubble is rapidly deflating. It’s the turn of the regulators to widen this bubble.

Previous articles on the subject:

“…In Hong Kong, if a listed company’s assets consist primarily of cash or short-term investments, it will be… pic.twitter.com/0P5wnkRD08

– soncorrekt (@itscorrekt) October 22, 2025

According to HKEX, all listing applications must operate “viable and sustainable” businesses. To date, none of the proposed DAT companies have received the green light from HKEX, the report said.

Other regions also block crypto cash companies

It’s not just HKEX that is cracking down on companies trying to become digital asset treasury (DAT) companies.

In Australia, ASX Ltd. banned companies from holding 50% or more of their balance sheet in cash or cash-like assets, making it impossible to adopt a crypto treasury model.

Meanwhile, the Bombay Stock Exchange has rejected an application by Jetking Infotrain to list shares for preferential allotment, of which it said it would use part of the proceeds to invest in crypto.

DAT Firms Under Pressure as Stock and Crypto Prices Fall

The crackdown comes as DAT companies face increasing pressure, with stock prices and the crypto assets they hoard losing value.

The largest of the companies and the pioneer of the DAT trend is Michael Saylor’s Strategy. It began buying Bitcoin in 2020 and has since become the largest company holding BTC, with 640,418 coins on its balance sheet, according to Bitcoin Treasury data. watch.

This is after the company announced that it bought Another 168 BTC earlier this week for approximately $18.8 million at an average price of $112,051 per coin.

Top 20 companies holding BTC (Source: Bitcoin Treasuries)

Since Strategy started buying Bitcoin, other companies, like Japan-based Metaplanet, have started doing the same. Some companies have also stored smaller cryptocurrencies, including Ethereum. Bitmine Immersion Technologies and SharpLink Gaming are currently the largest ETH treasury companies in the world.

However, all of these companies have seen their stock prices fall over the past month.

Shares of Strategy fell more than 10%, while shares of Metaplanet and BitMine plunged more than 28% and 5%, respectively. Shares of SharpLink Gaming fell more than 13%.

Bitcoin has lost more than 3% in the past month and Ethereum is down more than 7%.

Investors lose $17 billion in DAT

Investors have been hit hard by the drop in DAT’s stock price. A recent report from 10X Research found that investors lost about $17 billion buying the companies’ stocks.

10X Research said DAT companies “conjured billions in paper wealth” by issuing shares whose value was far greater than the underlying crypto they held.

“With NAVs rolling back and forth, retail investors have lost billions – and many likely lack the conviction to continue adding to their positions,” the report said. »The illusion has disappeared.

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