The U.S. Securities and Exchange Commission has suspended trading in QMMM Holdings after its stock jumped nearly tenfold on plans to build a $100 million cryptocurrency treasury.
Summary
- SEC suspends QMMM after sharp rally.
- Stock jumped 959% on $100M crypto treasury news.
- Concerns raised over social media-driven manipulation.
QMMM Holdings Ltd. stock soared almost tenfold in less than three weeks on news of a planned cryptocurrency treasury.
According to a Sept. 30 report from Bloomberg, the suspension took effect after the Hong Kong-based advertising firm’s stock jumped 959% following its Sept. 9 announcement that it would build a $100 million diversified cryptocurrency treasury.
QMMM stock sudden rally triggers scrutiny
The company said the strategy would initially focus on Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) while exploring blockchain and artificial intelligence integrations.
The disclosure sparked heavy retail buying, with QMMM’s shares peaking above $260 intraday before pulling back to $119 at the time of the halt. Even at that level, the stock remained up more than 2,100% for the year.
The SEC said it was concerned about “potential manipulation,” pointing to online posts by unidentified promoters urging investors to buy the stock. The suspension runs until 11:59 p.m. ET on Oct. 10. Nasdaq, where the company trades, declined to comment, while QMMM has yet to respond.
Crypto treasury trend under watch
QMMM is the latest firm to join a growing list of companies pursuing crypto treasury strategies, a trend popularized by MicroStrategy’s high-profile Bitcoin purchases. Supporters argue that digital assets can serve as reserves or yield-bearing holdings, but critics warn the moves can fuel speculation and expose firms to extreme volatility.
The SEC also halted trading in Smart Digital Group Ltd. for similar reasons after it announced plans to create its own cryptocurrency asset pool. Meanwhile, regulators have stepped up scrutiny across the sector, with the Wall Street Journal reporting ongoing probes into unusual trading linked to crypto-related corporate announcements.
Nasdaq has already tightened requirements, mandating shareholder approval for equity raises tied to crypto purchases. Analysts say the QMMM suspension highlights regulators’ intent to curb hype-driven rallies and could make exchanges more cautious when listing companies pursuing crypto treasury strategies.
When trading resumes in mid-October, QMMM may face sharp volatility, or further regulatory risk, depending on the outcome of the SEC’s review.