Hong Kong Inventory Change Cracks Down On Crypto Treasuries

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

That’s in response to a Bloomberg report that mentioned Hong Kong Exchanges & Clearing Ltd. has challenged the plans of no less than 5 such corporations in latest months. The story cited sources acquainted with the matter, who mentioned that transitioning right into a pure-play crypto accumulator is at present forbidden by the bourse. 

Corporations Are Prohibited From Having Giant Liquid Holdings

The change is obstructing the functions as a part of a rule that prohibits corporations from holding giant reserves of liquid property, which is crypto on this case. The purpose is to forestall the itemizing of shell corporations that successfully use their standing as a listed entity for cash.

The big 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 property are made up primarily of money or short-term investments, it should… pic.twitter.com/0P5wnkRD08

— itscorrekt (@itscorrekt) October 22, 2025

In response to HKEX, all itemizing functions should function “viable and sustainable” companies. Thus 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 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 property, which makes it unattainable to undertake a crypto treasury mannequin.

In the meantime, the Bombay Inventory Change rejected an software from Jetking Infotrain to listing shares for a preferential allotment, which it mentioned it could use a number of the proceeds to put money into crypto.

DAT Companies Underneath Strain As Inventory And Crypto Costs Fall

The clampdowns come as DAT corporations face rising strain, with each share costs and the crypto property they hoard shedding worth.

The biggest of the businesses and the pioneer of the DAT pattern 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 mean worth of $112,051 per coin.

Prime 20 company BTC holders (Supply: Bitcoin Treasuries)

Since Technique began shopping for Bitcoin, different corporations, similar to 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 present the largest ETH treasury corporations on the earth. 

Nevertheless, all of these corporations have seen their inventory costs fall prior 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% prior 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 increased than the underlying crypto they held.

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

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