Bloomberg: Three Major Asian Exchanges Are Resisting Crypto Treasury Firms

Original Title: Asia's Biggest Stock Exchanges PushBack Against Companies Hoarding Crypto
Original Authors: Alice French, Richard Henderson, Kiuyan Wong, Yasutaka Tamura
Translated by: Joe Zhou, Foresight News

· Hong Kong Exchanges and Clearing Limited (HKEX) has questioned at least five companies planning to transform into DATs (Digital Asset Treasury companies), stating that current regulations prohibit companies from hoarding excessive liquid funds.

· Resistance to DATs has also emerged in India and Australia. Local exchange operators share similar concerns, and these attitudes may stall the plans of many crypto treasury companies.

· In the Asia-Pacific region, Japan is an exception. Local listing rules are relatively lenient for digital asset treasury companies, granting them greater freedom. However, even so, signs of friction have begun to appear—for example, MSCI has proposed removing large crypto treasury companies from its global indices.

The three major stock exchanges in the Asia-Pacific region are pushing back against companies disguised as listed firms whose main business is hoarding cryptocurrency.

According to sources, HKEX has, in recent months, questioned at least five companies planning to shift their core business to a digital asset treasury strategy, citing rules that prohibit holding large amounts of liquid assets. So far, none of these companies have received approval. In India and Australia, so-called digital asset treasury companies (DATs) have faced similar resistance.

This resistance targets both cryptocurrencies themselves and the listed company vehicles centered on hoarding crypto assets, posing a risk to the digital asset rally that has persisted for most of 2025.

Bitcoin hit an all-time high of $126,251 on October 6, up 18% so far this year. This surge has largely been driven by the emergence of numerous companies dedicated to hoarding bitcoin. The model pioneered by MicroStrategy, the $70 billion bitcoin giant led by Michael Saylor, has spawned hundreds of imitators worldwide. Most of these companies have a market capitalization exceeding the total value of their crypto holdings, highlighting strong investor demand.

Recently, the pace of digital asset treasury company (DAT) purchases has slowed, and their stock prices have declined, coinciding with a sharp sell-off in the broader crypto market. According to a recent report by Singapore's 10X Research, retail investors have lost about $1.7 billion in DAT trades.

In the Asia-Pacific market, concerns from exchange operators could completely block the plans of crypto hoarders.

"Listing rules directly determine the speed and regulatory standards of the crypto treasury model," said Rick Maeda, a crypto analyst at Tokyo-based Presto Research. He added that if the rules are "predictable and lenient," they can attract capital and boost investor confidence; a stricter environment would slow down the execution of digital asset treasury companies.

"Cash Companies" Among Listed Firms

According to Hong Kong exchange rules, if a listed company's assets consist mainly of cash or short-term investments, it will be considered a "Cash Company," and its shares may be suspended from trading. The aim is to prevent shell companies from equating their listed status with cash for trading purposes.

Simon Hawkins, a partner at law firm Latham & Watkins, said that for companies intending to hoard cryptocurrency, whether they can obtain approval depends on whether they can "demonstrate that acquiring crypto assets is a core part of their business operations."

According to sources, listed companies in the former British colony are currently prohibited from transforming into pure crypto hoarding companies.

An HKEX spokesperson declined to comment on the specific companies it has questioned but stated that its framework "ensures that all listing applicants and listed companies have viable, sustainable, and substantive businesses and operations."

In a similar case, the Bombay Stock Exchange last month rejected Jetking Infotrain's application for a preferential share listing. The company had stated it would invest part of the funds raised into cryptocurrency. A filing shows the company is appealing the decision. BSE and Jetking did not respond to requests for comment.

In Australia, the Australian Securities Exchange (ASX Ltd.) prohibits listed companies from allocating 50% or more of their balance sheet to cash or cash-like assets. Steve Orenstein, CEO of software company Locate Technologies Ltd., said this provision makes adopting the crypto treasury model "almost impossible." According to a spokesperson, this company, which has shifted from software to bitcoin buying, is now moving its listing from Australia to New Zealand, where the New Zealand Exchange (NZX Ltd.) is willing to accept digital asset treasury companies (DATs).

An ASX spokesperson said that if a listed company shifts to investing in bitcoin or ethereum, "it is recommended that their investment product be structured as an exchange-traded fund (ETF)." Otherwise, they "are unlikely to be considered suitable for inclusion on the official listing roster."

They added that ASX does not prohibit the crypto treasury strategy but warned that potential conflicts with listing rules must be handled carefully.

Japan's "Hoarders"

Japan is a notable exception in the Asia-Pacific region. Locally, it is common for listed companies to hold large amounts of cash, and listing rules for digital asset treasury companies (DATs) are relatively lenient, granting them significant freedom.

Hiromi Yamaji, CEO of Japan Exchange Group, said at a press conference on September 26: "Once a company is listed, if it makes appropriate disclosures—for example, disclosing that it is buying bitcoin—it would be quite difficult to immediately deem such actions unacceptable."

According to BitcoinTreasuries.net, Japan has 14 listed bitcoin buyers, the most in Asia. These include hotel company Metaplanet Inc., one of the early adopters of the digital asset treasury model, which currently holds about $3.3 billion in bitcoin. Since beginning its transformation in early 2024, the company's stock price once soared to a peak of 1,930 yen in mid-June but has since fallen by more than 70%.

Japan has also seen some rather bizarre bitcoin purchase plans: Tokyo-based, publicly listed nail salon operator Convano Inc. announced in August that it planned to raise about 434 billion yen ($3 billion) to buy 21,000 bitcoins. At the time, the company's market capitalization was only a fraction of the fundraising amount.

Even for Japan's crypto hoarders, signs of friction have emerged. MSCI, one of the world's largest index providers, recently proposed excluding large digital asset treasury companies (DATs) from its global indices following an investigation into Metaplanet's $1.4 billion international equity offering in September. Metaplanet joined the MSCI Japan Small Cap Index in February this year and stated it would use most of the funds raised to buy bitcoin, later purchasing an additional 10,687 tokens. Metaplanet did not respond to requests for comment.

MSCI stated in an announcement that digital asset treasury companies (DATs) "may exhibit characteristics similar to investment funds" and therefore do not qualify for inclusion in its indices. MSCI recommended barring companies whose crypto assets account for 50% or more of their total assets.

Japanese stock analyst Travis Lundy wrote in a Smartkarma report that if excluded from the indices, digital asset treasury companies (DATs) would no longer benefit from passive inflows from funds tracking those indices. He added, "This could destroy the argument for their price-to-book premium."

 

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