Asian Exchanges Block Crypto Treasury Company Listings

Japanese stock exchanges remain open to the concept. Japan allows DATs with proper disclosure and hosts the most in Asia — 14 listed Bitcoin (BTC) buyers, including the worlds fourth-largest Bitcoin DAT, Metaplanet.

However, MSCI, one of the worlds largest index providers, is proposing to exclude large DATs with more than 50% crypto holdings from its indexes, which could cut off passive investment flows.

Cointelegraph reached out to all three stock exchanges but did not receive an immediate response.

Companies accused of selling their listed status

Some bourses have expressed concern about these companies selling their “listed status” rather than running legitimate operating businesses, Bloomberg reported.

There is also the “cash company” issue with firms holding mostly liquid assets, potentially looking like empty shell companies that could be used for improper purposes.

Regulators also want listed companies to have real operations, not just be investment vehicles holding assets, it stated.

Crypto treasury model on thin ice

DATs arguably drove crypto markets this year, but many are now suffering, trading at or below their net asset values (NAVs) as markets have corrected heavily.

Researchers at 10x Research said that the “age of financial magic is ending for Bitcoin treasury companies,” citing slumping share prices, especially at Metaplanet.

Even BitMine chair Tom Lee hinted earlier this month that the DAT bubble may have burst.