NASDAQ strengthens its review, cryptocurrency reserve companies fall sharply, is this a good opportunity for Arbitrage?

According to reports, the Nasdaq exchange has required some companies holding tokens to obtain shareholder approval before issuing stock to purchase crypto assets, triggering a comprehensive fall in the shares of digital asset financial company (DAT), and stocks related to the Trump family were also not spared, with American Bitcoin experiencing a big dump of 20%. Some investors believe that strengthening transparency and control may slow down trading speed, but in the long run, it could be a good thing. Many are also recalculating the value of the relevant tokens on these companies' balance sheets for arbitrage trading.

NASDAQ strengthens scrutiny of crypto assets companies? DAT plunges comprehensively.

According to a report by The Information, the Nasdaq exchange has required some token-holding companies to obtain shareholder approval before issuing stock to purchase crypto assets, causing a big dump in the shares of digital asset financial company (DAT).

According to financial advisory firm Architect Partners, so far, 184 publicly listed companies have announced plans to raise over $132 billion to purchase various crypto assets.

Architect Partners founder Eric Risley stated:

“Nasdaq's decision is absolutely in line with the rights that shareholders are entitled to. Even if not provided, it should be expected and demanded that shareholders be given ample opportunities for information disclosure and expression of opinions. This may slow down the trading speed, but perhaps it's a good thing.”

Yesterday, the stocks related to crypto reserve companies fell across the board:

MicroStrategy (MSTR): fall 0.81%

BitMine (BMNR): fall 5.95%

SharpLink (SBET): fall 8.26%

Upexi (UPXI): fall 4.52%

DeFi Dev Corp (DFDV): fall 7.59%

The Trump family also did not escape, American Bitcoin fell by 20%.

The crypto companies associated with the Trump family business have fallen more significantly.

The financial company ALT5 Sigma Corp holding WLFI Tokens ( stock code ALTS) experienced a fall of 13.81%. It suffered a big dump of 53% over the week. The mining company American Bitcoin Corp. participated by Eric Trump just announced its issuance, and its stock price also fell by 20%.

( Trump family American Bitcoin listed skyrocketing 16%, Eric Trump wealth soaring 540 million )

To alleviate concerns, World Liberty held a live event on the CoinMarketCap website on Thursday, with over 2,000 participants. A spokesperson told Bloomberg News:

The World Liberty Financial team is committed to creating and launching top-tier products like USD1, bringing the power of DeFi to millions of users worldwide.

Investors are conducting arbitrage on DAT stocks and related Crypto Assets.

WLFI investor Morten Christensen stated that as the stock prices of financial companies fall, the prices of related Tokens also decline, as investors are recalculating the value of these Tokens on the companies' balance sheets.

Christensen stated:

“Before the value ratio reaches the ideal level, we see a large amount of arbitrage trading between ALT stocks and WLFI. My intuition is that traders are looking for the ratio between ALT/WLFI prices, and of course, short sellers will also profit from it.”

Famous short seller Jim Chanos has also stated that practices like Strategy, which use fundraising to purchase Bitcoin and then use “we own Bitcoin” as a reason to inflate company valuations, are extremely absurd. He suggests that investors go long on Bitcoin while shorting MicroStrategy for arbitrage.

( Notable short-seller Jim Chanos: Going long on Bitcoin + shorting MicroStrategy for arbitrage )

This article discusses whether the Nasdaq's strengthened scrutiny and the comprehensive decline of encryption reserve companies present a good opportunity for arbitrage. First appeared in Chain News ABMedia.