The reason only surfaced days later – the company had quietly inked a $58 million crypto deal to build a BNB treasury, bringing on Anthony Scaramucci as an adviser.

The stock doubled, then crashed back near its starting point, prompting speculation that word leaked early. Company executive Patrick Horsman dismissed the idea, saying the surge was “uncontrollable” once deal discussions reached wider circles.

That episode is now part of a growing pattern. Dozens of digital asset treasury (DAT) stocks – firms that hold cryptocurrencies on their balance sheets – have shown similar behavior, rising sharply just before their crypto announcements. A study by Architect Partners found that more than half of 35 such firms saw pre-announcement gains, some as high as 200%.

The U.S. Securities and Exchange Commission has taken notice, reportedly examining hundreds of DAT transactions. In one striking case, it suspended trading in QMMM Holdings after a 1,000% rally it linked to possible online manipulation.

Some investors say the problem stems from traders who speculate ahead of official filings. Akshat Vaidya of Maelstrom, the family office of Arthur Hayes, said many “buy both the stock and the token, then dump everything when the news drops.”

After a year-long frenzy that helped DATs amass over $140 billion in Bitcoin, enthusiasm is fading. Market corrections, coupled with regulatory scrutiny, are cooling the trend. Cardano’s Charles Hoskinson believes the model must evolve: “They need to become real blockchain builders, not just token holders.”

For Applied DNA, now renamed BNBX, Scaramucci insists the shift remains a long-term play. “The hype cycle’s over – and that’s healthy,” he said. “Now it’s about proving value.”

Still, with share prices moving before the news, regulators face a familiar question: is this innovation, or insider trading dressed in crypto’s glow?

Source

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