Hong Kong Inventory Trade Cracks Down On Crypto Treasuries

The Hong Kong Inventory Trade (HKEX) has rejected a number of makes an attempt by listed corporations to make crypto treasuries their core enterprise.

That’s based on a Bloomberg report that mentioned Hong Kong Exchanges & Clearing Ltd. has challenged the plans of not less than 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 the moment forbidden by the bourse.

Corporations Are Prohibited From Having Massive Liquid Holdings

The trade is obstructing the functions as a part of a rule that prohibits corporations from holding massive reserves of liquid belongings, which is crypto on this case. The goal is to forestall the itemizing of shell corporations 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 should… pic.twitter.com/0P5wnkRD08

— itscorrect (@itscorrect) October 22, 2025

In keeping with HKEX, all itemizing functions should function “viable and sustainable” companies. So far, not one of the proposed DAT corporations have been given the inexperienced mild by HKEX, the report mentioned.

Different Areas Are Additionally Blocking Crypto Treasury Companies

It’s not simply HKEX that’s clamping down on corporations making an attempt to grow to be digital asset treasury (DAT) corporations.

In Australia, ASX Ltd. has banned corporations holding 50% or extra of their stability 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 might use among the proceeds to spend money on crypto.

DAT Companies Underneath Strain As Inventory And Crypto Costs Fall

The clampdowns come as DAT corporations face growing stress, 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 grow to be the largest company holder of BTC, with 640,418 cash on its stability 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.

Prime 20 company BTC holders (Supply: Bitcoin Treasuries)

Since Technique began shopping for Bitcoin, different corporations, reminiscent of Japan-based Metaplanet, have began doing the identical. There have additionally been corporations which have stocked up on smaller cryptos, together with Ethereum. Bitmine Immersion Applied sciences and SharpLink Gaming are at the moment the largest ETH treasury corporations on this planet.

Nevertheless, 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%.

Traders Lose $17 Billion Piling Into DATs

Traders took a success from the decline in DAT share costs. A latest report from 10X Analysis discovered that traders 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 have been valued a lot greater than the underlying crypto they held.

“With NAVs now having absolutely round-tripped, retail traders have misplaced billions — and lots of possible lack the conviction to maintain including to their positions,” it mentioned. ”The phantasm vanished.”

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