#What New Rules Has Nasdaq Implemented for Crypto-Linked Stocks?
Nasdaq has announced significant changes that will impact companies aiming to raise capital through the issuance of new shares to invest in cryptocurrencies. Under the new regulations, firms must now secure shareholder approval before proceeding with such stock issuances. This measure is designed to uphold market integrity, especially as large amounts of capital are often mobilized through increasingly sophisticated financial structures.
Violation of this mandate could result in serious consequences, including suspension from trading or outright delisting. This development has immediate implications for crypto-related equities, which experienced a decline in value following the announcement.
#How Are Crypto Stocks Reacting to Nasdaq's Changes?
The response from the market was swift and negative. Key players in the crypto sector saw their stock prices adversely affected. Strategy stock decreased by 3.5% early on before managing to recover to a 2% loss by the midday mark. In more severe drops, BitMine Immersion saw its shares tumble nearly 9%, SharpLink Gaming was down 11%, while Ethzilla plunged as much as 15% before settling with a 9% decrease.
#What is Happening to Major Cryptocurrencies?
Naturally, these stock declines coincided with a downturn in cryptocurrency values. Bitcoin fell by 2.5%, trading at around $109,500, which is significant as it dipped below the crucial $110,000 threshold. Other notable cryptocurrencies followed suit, with Ether decreasing by over 3% to $4,300, and Solana dropping by 3.5%, just above $204. Overall, the broader cryptocurrency market took a hit, losing 2.2% of its total capitalization, which now stands at approximately $3.7 trillion according to CoinGecko. This series of events underscores the interconnected nature of cryptocurrency markets and related stocks, signaling to investors the need for vigilance in, and awareness of, regulatory impacts.