Hong Kong’s markets regulator has moved to rein in listed companies leaning on digital asset treasuries, stepping up oversight while preparing a public education push to warn retail investors about the risks.
“The SFC is concerned about whether DAT companies’ share prices are traded at a substantial premium above the cost of their DAT holdings,” he said, according to the South China Morning Post.
Attention has sharpened after the Hong Kong Exchanges and Clearing reportedly challenged plans from at least five companies seeking to pivot to DAT-focused models as their main business, citing rules that restrict excessive holdings of liquid assets.
Wong pointed to cases in the US that “showed that the premium could be very high, which may add risks to investors trading in these stocks”. He added that many Hong Kong retail investors may not fully understand the risks tied to digital asset treasury, or DAT, strategies.
The push comes as some US-listed companies that hold large pools of Bitcoin have at times traded at notable premiums to the value of their coin holdings, amplifying boom-and-bust cycles for shareholders.
“The SFC is closely monitoring DAT developments,” Wong said. “We caution investors to fully understand the underlying risks of DAT.” He said the commission will strengthen public awareness and investor education on DAT and its risks.