The Hong Kong Stock Exchange (HKEX) has rejected multiple attempts by listed companies to make crypto treasuries their core business. According to a Bloomberg report, Hong Kong Exchanges & Clearing Ltd. has challenged the plans of at least five such firms in recent months. Sources familiar with the matter indicated that transitioning into a pure-play crypto accumulator is currently forbidden by the bourse.
Companies Are Prohibited From Holding Large Liquid Holdings
The exchange is blocking these applications as part of a rule that prohibits firms from holding large reserves of liquid assets, which includes cryptocurrency. The objective is to prevent the listing of shell companies that would effectively use their listed status for financial manipulation.
The gigantic DAT bubble deflating quickly. Regulators' turn to prick that bubble.
Previous posts on the issue: https://t.co/KrIeFcEy5jhttps://t.co/jKbaesjxlk
"…In Hong Kong, if a publicly traded firm’s assets are made up primarily of cash or short-term investments, it will… pic.twitter.com/0P5wnkRD08
— itscorrekt (@itscorrekt) October 22, 2025
According to HKEX, all listing applications must demonstrate the operation of “viable and sustainable” businesses. To date, none of the proposed Digital Asset Treasury (DAT) firms have received approval from HKEX.
Other Regions Are Also Blocking Crypto Treasury Firms
The Hong Kong Stock Exchange is not the only entity implementing restrictions on companies aiming to become digital asset treasury (DAT) firms. In Australia, ASX Ltd. has prohibited companies from holding 50% or more of their balance sheet in cash or cash-like assets, which effectively prevents the adoption of a crypto treasury model. Similarly, the Bombay Stock Exchange rejected an application from Jetking Infotrain to list shares for a preferential allotment, part of which was intended for crypto investments.
DAT Firms Under Pressure As Stock And Crypto Prices Fall
These regulatory clampdowns coincide with increasing pressure on DAT firms, as both their share prices and the value of the crypto assets they hold have declined. Strategy, a prominent company in this space and a pioneer of the DAT trend, began acquiring Bitcoin in 2020. It has since become the largest corporate holder of BTC, with 640,418 coins on its balance sheet, according to data from Bitcoin Treasuries. The company recently announced the purchase of an additional 168 BTC for approximately $18.8 million, at an average price of $112,051 per coin.

Following Strategy's lead, other companies, such as Japan-based Metaplanet, have also begun to accumulate Bitcoin. Some companies have also invested in smaller cryptocurrencies like Ethereum, with Bitmine Immersion Technologies and SharpLink Gaming being the largest ETH treasury firms globally. However, all these companies have experienced a fall in their stock prices over the past month. Strategy's shares have dropped by over 10%, Metaplanet's by more than 28%, BitMine's by over 5%, and SharpLink Gaming's by more than 13%. Bitcoin has also seen a decline of over 3% in the past month, while Ethereum is down by more than 7%.
Investors Lose $17 Billion Piling Into DATs
Investors have incurred significant losses due to the decline in DAT share prices. A recent report from 10X Research indicated that investors lost an estimated $17 billion by purchasing shares in these firms. 10X Research stated that DAT firms "conjured billions in paper wealth" by issuing shares valued significantly higher than the underlying crypto assets they held. The report further noted, "With NAVs now having fully round-tripped, retail investors have lost billions — and many likely lack the conviction to keep adding to their positions. The illusion vanished."

