SEC Halts QMMM Trading Amid Crypto Treasury Plans
the U.S. Securities and Exchange Commission (SEC) has suspended trading in QMMM Holdings due to a massive stock surge. The Hong Kong-based firm’s stock skyrocketed nearly tenfold after announcing plans to establish a $100 million cryptocurrency treasury.
On September 9,QMMM revealed its intention to invest in Bitcoin,Ethereum,and Solana.This move aimed to explore blockchain and AI integrations. The news ignited retail investor interest, causing the stock to peak above $260 before settling at $119.
The SEC expressed concerns about “potential manipulation,” citing social media posts by unknown promoters. the suspension will last until October 10. QMMM has not commented,and Nasdaq declined to provide details.
QMMM is part of a growing trend of companies adopting crypto treasury strategies, following in MicroStrategy’s footsteps. Proponents see digital assets as reserves or yield-bearing holdings. However, critics warn of speculation and volatility.
The SEC also halted trading in Smart Digital Group Ltd. for similar reasons. Regulators are increasing scrutiny in the sector,with ongoing probes into unusual trading linked to crypto announcements.
Nasdaq has tightened requirements, demanding shareholder approval for crypto-related equity raises. Analysts believe the QMMM suspension signals regulators’ efforts to curb hype-driven rallies.
When trading resumes in mid-October, QMMM may face volatility or further regulatory risks, depending on the SEC’s review outcome.
