SEC and FINRA Investigate Pre-Announcement Stock Surges as 200+ Firms Reveal Crypto Treasuries in...

Regulators probe stock surges tied to 200+ corporate crypto treasury disclosures in 2025.

Cases include Trump Media, GameStop, MEI Pharma, and SharpLink with sharp pre-announcement moves.

SEC and FINRA reviews may reshape disclosure rules and penalties for corporate crypto strategies.

Unusual stock swings before corporate crypto treasury disclosures are now under regulatory review. The Wall Street Journal reported Thursday that the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) are examining whether firms selectively shared material information before public announcements.

Regulatory Scrutiny on Corporate Crypto Strategies

More than 200 public companies have unveiled crypto treasury plans this year. Regulators have contacted several of them regarding sharp stock price movements. Officials cautioned about possible breaches of Regulation Fair Disclosure, which prohibits selectively providing market-moving information to certain investors before public release.

Companies have raised more than $20 billion through stock offerings, convertible debt, and private placements in 2025. Many firms followed the model of Strategy, formerly MicroStrategy, which pioneered corporate Bitcoin purchases

However, unexplained price gains before official announcements have raised concerns about potential insider leaks or tipping. Cases under review include Trump Media, which announced a $2.5 billion Bitcoin treasury in May. Its stock showed abnormal volatility a week before disclosure. Similarly, GameStop’s shares surged 40% in three sessions before revealing a $500 million Bitcoin purchase.

Market Trends and Ongoing Investigations

The surge in corporate crypto strategies accelerated after an executive order established a U.S. strategic Bitcoin reserve in early 2025. This triggered a wave of treasury moves across industries from gaming to biotech. Yet investigators are now reviewing clustered trading patterns and unusual option activity.

Biotech firm MEI Pharma announced a Litecoin allocation in July after its shares nearly doubled in four days of heavy trading. SharpLink Gaming also saw a 433% intraday surge ahead of its Ethereum treasury shift in May, raising further scrutiny from regulators.

The SEC and FINRA have not confirmed enforcement actions but are actively reviewing communications and trading data from companies and brokers. Analysts say the outcome of these reviews could determine whether firms face penalties or tighter disclosure requirements in future treasury announcements.

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