US Regulators Probe Suspicious Stock Trades Ahead of Crypto Treasury Announcements: WSJ

Highlights:

• Regulators contacted companies after unusual trading activity before crypto treasury announcements appeared.
• Experts warn that poor timing in treasury plans may cause instability and financial risks.
• Over 60 companies joined the 2025 Bitcoin rush, raising billions through fundraising.

The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) have contacted some companies after finding unusual trading activity before their announcements about digital asset treasuries. This action came from a review of more than 200 firms that shared crypto treasury strategies this year. Regulators flagged only some of those companies after noticing sharp price moves and heavy trading, the Wall Street Journal reported, citing people familiar with the matter.

According to the Wall Street Journal, U.S. regulators have flagged unusual trading activity ahead of crypto-treasury announcements by some companies. The SEC and Finra suspect potential violations of Regulation Fair Disclosure (Reg FD) and have issued inquiry letters, which…

— Wu Blockchain (@WuBlockchain) September 25, 2025

Strategy Model and Market Reactions

Many firms followed the model set by Michael Saylor’s company, Strategy. This model raises money through debt or equity and then buys digital assets to keep as reserves on the balance sheet. The assets include Bitcoin, Ethereum, Solana, and others. These companies also privately discussed plans to raise money for buying cryptocurrencies like Bitcoin.

Some even held investor meetings under nondisclosure agreements. But in some cases, secrecy broke down. Details of these plans leaked before official announcements, raising concerns about selective disclosure or insider trading.

Stock prices often jumped in the days before announcements, sometimes doubling or tripling. These unusual moves increased suspicion that insiders may have shared information or tipped investors, which pushed regulators to take action. The regulator’s outreach shows rising concern about how important information is shared before official market announcements.

Experts believe a carefully designed crypto treasury strategy can highlight a company’s financial strength. However, if firms move at the wrong time or pursue quick profits, the approach may appear like a gimmick and could expose them to liquidations or broader financial risks. Regulators are now investigating whether sensitive information was leaked or if trading took place using non-public details.

At the center of this scrutiny is Regulation Fair Disclosure (Reg FD), an SEC rule that prohibits companies from selectively sharing material information with a few investors before making it public. Any violation of this rule can result in enforcement actions, financial penalties, and serious reputational damage.

Corporate Bitcoin Rush Gains Momentum in 2025

The trend picked up speed in early 2025 after the Trump administration issued an executive order to create a national strategic Bitcoin reserve. Since then, more than 60 companies across software, gaming, biotech, and energy have announced plans to put part of their balance sheets into crypto. 

Together, these companies have aimed to raise over $20 billion through stock sales, convertible debt, and private placements. Their goals include protecting against inflation, attracting younger investors, and following the big gains earned by early adopters. Michael Saylor’s company, Strategy, is still the largest public corporate holder of Bitcoin, according to Bitcointreasuries data. On Monday, the company said it bought another 850 BTC for about $99.7 million, bringing its total holdings to 639,835 BTC.

Strategy has acquired 850 BTC for ~$99.7 million at ~$117,344 per bitcoin and has achieved BTC Yield of 26.0% YTD 2025. As of 9/21/2025, we hodl 639,835 $BTC acquired for ~$47.33 billion at ~$73,971 per bitcoin. $MSTR $STRC $STRK $STRF $STRD https://t.co/rG5pvryeYL

— Michael Saylor (@saylor) September 22, 2025