Bloomberg: Asia's Top Three Exchanges Are Shunning 'Crypto Treasuries' Companies

Original Title: Asia's Biggest Stock Exchanges Push Back Against Companies Hoarding Crypto

Original Authors: Alice French, Richard Henderson, Kiuyan Wong, Yasutaka Tamura

Original Translation: Joe Zhou, Foresight News

· Hong Kong Exchanges and Clearing (HKEX) has challenged at least five companies planning to transition to a DAC (Digital Asset Treasury Company), stating that current regulations prohibit companies from hoarding excessive cash.

· Resistance to DACs has also been seen in India and Australia. Local exchange operators share similar concerns, potentially causing many cryptocurrency treasury company plans to stall.

· In the Asia-Pacific region, Japan is a unique case. Local listing rules for digital asset treasury companies are relatively lenient, giving them greater freedom. However, signs of friction are beginning to emerge — for example, MSCI has proposed removing large cryptocurrency treasury companies from its global index.

The three major securities exchanges in the Asia-Pacific region are pushing back against companies masquerading as publicly traded companies with cryptocurrency hoarding as their primary business.

According to sources familiar with the matter, Hong Kong Exchanges and Clearing (HKEX) have questioned at least five companies in recent months that are planning to pivot their core businesses to a digital asset treasury strategy, citing rules prohibiting holding large amounts of liquid assets. As of now, these companies have not received approval. In India and Australia, so-called Digital Asset Treasury (DAT) companies have also faced similar resistance.

This resistance targets both cryptocurrency itself and publicly traded entities focused on hoarding cryptocurrency, posing risks to the digital asset market, which has largely been on an upward trend throughout much of 2025.

Bitcoin hit a record high of $126,251 on October 6, with an 18% year-to-date increase. This surge has been largely driven by the emergence of numerous companies specifically hoarding Bitcoin. The model pioneered by Bitcoin giant MicroStrategy, led by Michael Saylor and valued at $70 billion, has spawned hundreds of imitators globally. Most of these companies have market capitalizations exceeding the total value of their held cryptocurrency assets, underscoring strong investor demand.

Recently, the Digital Asset Treasury company (DAT) has experienced a slowdown in acquisitions, leading to a decline in its stock price, in line with a sharp selloff across the entire crypto market. According to a recent report by Singapore's 10X Research, retail investors have lost roughly $17 billion in DAT trading.

In the Asia-Pacific market, concerns from exchange operators may completely hinder the plans of cryptocurrency hodlers.

「Listing rules directly determine the speed and standardization of operation for cryptocurrency treasury models,」 said Rick Maeda, a crypto analyst at Tokyo-based Presto Research. He added that if the rules are 「predictable and lenient,」 they can attract funds and boost investor confidence; whereas a stricter environment would slow down the execution speed of digital asset treasury companies.

「Cash Company」 Within Listed Enterprises

Under the rules of a Hong Kong exchange, if a listed company's assets consist mainly of cash or short-term investments, the company will be considered a 「Cash Company」 and its stock may be suspended from trading. This measure aims to prevent shell companies from using their listed status as a guise for money trading.

Simon Hawkins, a partner at law firm Latham & Watkins, stated that for companies looking to hodl cryptocurrency, approval depends on whether they can 「prove that acquiring crypto assets is a core part of their business operations.」

Sources indicated that for listed companies from former British colonies, transitioning to pure cryptocurrency hodling companies is currently prohibited.

A spokesperson for the Hong Kong Stock Exchange (HKEX) declined to comment on specific companies under scrutiny but stated that their framework 「ensures that all enterprises applying for listing and already listed companies have viable and sustainable operations, with substantive content.」

In a similar case, the Mumbai Stock Exchange recently rejected a preferential allotment listing application from Jetking Infotrain. The company had previously stated that it would allocate some of the raised funds to cryptocurrency. A filing showed that the company is appealing this decision. Both BSE (Mumbai Stock Exchange) and Jetking did not respond to requests for comments.

In Australia, the Australian Securities Exchange (ASX Ltd.) prohibits listed companies from allocating 50% or more of their balance sheet funds to cash or cash-like assets. Steve Orenstein, CEO of software company Locate Technologies Ltd., stated that this clause makes adopting a cryptocurrency treasury model 「almost impossible.」 According to a spokesperson, the enterprise, which transitioned from a software company to a Bitcoin buyer, is currently moving its listing from Australia to New Zealand, where the New Zealand Exchange (NZX Ltd.) is willing to accept digital asset treasury companies (DAT).

A spokesperson for the Australian Securities Exchange (ASX) stated that if publicly listed companies turn to investing in Bitcoin or Ethereum, they are "advised to consider designing their investment product as an Exchange-Traded Fund (ETF)." Otherwise, they are "likely to not be deemed suitable for listing on the official exchange."

They mentioned that the ASX does not prohibit adopting a cryptocurrency treasury strategy, but at the same time, they warned that one must handle potential conflicts with listing rules carefully.

Japan's "Hodlers"

Japan stands out as a significant exception in the Asia-Pacific region. In the local context, it is very common for publicly listed companies to hold a large amount of cash, and the listing rules are relatively lenient towards Digital Asset Treasury (DAT) firms, granting them considerable freedom.

Hiromi Yamaji, CEO of Japan Exchange Group, stated in a press conference on September 26: "Once a company is listed, it would be quite difficult to immediately deem such behavior unacceptable if appropriate disclosures have been made — such as disclosing that they are buying Bitcoin."

According to data from BitcoinTreasuries.net, Japan is home to 14 publicly listed Bitcoin buyers, the highest in Asia. This includes the hotel business company Metaplanet Inc., an early adopter of the digital asset treasury model, currently holding around $3.3 billion worth of Bitcoin. Since starting its transition in early 2024, the company's stock price surged to a peak in mid-June at 1,930 yen, but has since dropped over 70%.

Japan has also seen some more bizarre Bitcoin buying schemes: Tokyo-based nail salon operator Convano Inc., listed on the stock market, announced in August plans to raise around 434 billion yen ($3 billion) to purchase 21,000 bitcoins. At that time, the company's market value was only a small fraction of this fundraising amount.

Even for Japan's cryptocurrency hodlers, signs of friction have emerged. MSCI, one of the world's largest index providers, recently proposed excluding large Digital Asset Treasury (DAT) firms from its global indexes following an investigation into Metaplanet's $1.4 billion international equity issuance in September. Metaplanet joined the MSCI Japan Small Cap Index in February this year and stated that it would use most of the funds raised to purchase Bitcoin, and later acquired an additional 10,687 tokens. Metaplanet did not respond to requests for comments.

MSCI stated in an announcement that Digital Asset Treasury (DAT) "may exhibit characteristics similar to investment funds," and therefore does not qualify for inclusion in its indexes. MSCI suggested implementing a ban on companies with over 50% of their total assets in crypto assets.

Japanese stock analyst Travis Lundy wrote in a report on Smartkarma that if excluded from the index, Digital Asset Treasury (DAT) would no longer benefit from passive fund inflows from funds tracking that index. He added, "This could potentially undermine the argument for its price-to-book premium."

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