Pop velvet storage brings small companies – and in some cases it shows possible trading patterns from the inside

Pop the price, which saw the transfer of shares from $ 3 to $ 7, was not a surprise. Upon announcing the purchase of Litecoin, Mei Pharma became the latest company that takes advantage of the famous stock price penetration: When a public company adds encryption to its public budget, traders responded by buying shares and increasing the company’s value to the cost of purchase.

However, what was unexpected was that the price of the MEI Pharma share was almost doubled in days before The advertisement has become publicly – although there are no material updates submitted to the Securities and Stock Exchange Committee, and there are no press leaflets, and hardly any gossip on social media.

MEI Pharma is not the only company that recently seen unusual pop music in its stock before announcing the purchase strategy. luck Discover a similar pattern in other small public companies, indicating that the informed run some of these ads, according to financial professors, investors and executives of companies.

“It seems suspicious for me,” said Shu Jiang, a professor at Duke University, studied internal trading on public markets. “This usually happens to many of the interior trading scenarios that I know by stories.” He added that he could not determine whether the trading from the inside has happened permanently without a comprehensive investigation.

MEI Pharma spokesman rejected the comment.

Speakers of four other companies have unusual price movements before Kindly MD, Empier Digital, Global Global, and 180 Science Corp – to request a comment. The spokesperson rejected the biomedics of vitality and Sonnet, two other companies for a Crypto cabinet with similar price movements, the comment.

Treed Treasu Boom

Treasury companies are one of the latest Manias in Crypto, and billionaire Michael Sailor is the pioneer of trend.

In 2020, the founder and head of the strategy, who was previously called Microstrategy, announced that its data analysis software will add Bitcoin To its public budget. Traders saw that the company’s shares are a agent of the largest encrypted currency in the world, and they bought their shares with the increase in the price of encrypted currency in the world.

For the strategy, the tactic has proven great success that it continued to accumulate approximately $ 70 billion of cryptocurrencies and reached the market value of about $ 100 billion, despite reporting the revenues of only $ 115 million in the second quarter of this year. (Compared, StarbucksWhich has a similar market value, mentioned 7.8 dollars one billion In revenues in the same period.)

Others sought to repeat the success of the strategy. The early copies included a Budget Hotel Company In Japan, which started adding Bitcoin in 2024 and a handful of other companies. This year, the trend started seriously. Since January, 184 public companies have announced the purchases of Crypto at a value of $ 132 billion combined, according to data from Architect Partners, a consulting company for encryption and financing.

“We have achieved somewhat from this point of saturation,” said Luis Kami, founder of RLH Capital, an investment consultant company that helped in the last treasury deals in recent treasury deals. He said now, investors are waiting to know if the coded treasury bets will make a profit.

“Information leakage”

Some of these are the benefit of fixed -related organic pollutants, however, retail organic pollutants are not retail investors, but people who have company contacts or strangers who managed to reach special details, who seem to have made a profit by advancing in the news.

Sharplink, a marketing company for sports and casinos, witnessed that the price of its share is less than $ 3 during April and early May. But on May 27, when it announced plans to add $ 425 million in ethereum To its public budget, its shares rose to an increase of about $ 36.

However, during the three days of trading before the announcement, Sharplink’s share doubled more than $ 3 to $ 6, although there are no SEC files or press leaflets from the company. “There is something that leaks there, because they are close to many investors, so it is really difficult to control it,” said CEPTO TERASURY CEO, which was placed in the deal. The CEO of his name refused to talk about a competitor.

A spokesman for Sharplink, who announced the completion of the purchase of the first ETHEREUM on June 13, said, said a spokesman for Sharplink, who announced the completion of the purchase of ETHEREUM I on June 13, luck The company had “policies and procedures in an attempt to prevent” trading on information from the inside, but it refused to provide more details.

Then there is Mill City Ventures, a small lender non -bank in Minnesota, which also showed signs of what the financiers call “information leakage”, or when non -general information spreads beyond those who declare to hear about a physical event.

In the two days, before the Mill City Ventures announced that it raised $ 450 million to become the Cryptocurrency Sui, its shares have seen more than three times to end the week by about $ 6 – without the company announced any material changes in its work.

“There was definitely activity in stocks before the announcement,” said Stephen McCaintech, CEO of Mel City and a general partner in the hedge fund, who led the donation. He later added: “We are very confident that price movements had no effect on pricing the deal.”

Mill City Ventures has been renamed since then to Sui Group Holdings.

Trading from the inside

Public markets have clear rules when it comes to announcing the news of “non -public material information” that is likely to affect the company’s share price.

The informed who receive news of a material event must agree to be “wavy on the wall”, a term indicating “crossing the wall” from being from the outside without information that moves from the inside with sensitive information. Companies usually have a database for individuals who have been compensated in the wall in case of communicating with the organizers to investigate internal trading.

In the case of Crypto Treasury companies, deals may be months of making them, but just days before the advertisement, brokers begin the so -called road width, or wide -ranging communication for investors to encourage them to put money in a deal.

For example, during a three -day period immediately before the Sharplink Pivot Crypto Treasury Pivot announcement, the company’s executive officials blogged investors in Malkintosh. It is worth noting that during those three days when the company’s shares appeared. During a two -day period when the deals maker established investors to collect donations of 450 million dollars for Mill City projects, stocks emerged for the non -banking lender.

The interior trading laws in the United States not only prevent executives in a company from trading on news that may affect the share price. Elisha Bridge, a partner in the law firm Shaybard Moulin and a former federal prosecutor in the southern province of New York, said the laws also apply to others who receive information from these executives. This includes investors who have been informed during promotional offers.

In the case of encrypted treasury companies, it is not clear who is benefiting from the front. While some executives in these companies have made notifications to grant shares or purchases before the encryption axis, the vast majority did not sell their property, according to SEC. The most likely is that only those who are familiar with the company’s managers or executives are removed.

However, suspicious price movement is in line with the long indexing researchers in public markets. one Ticket In 2014, I found that the shares of companies increased by average by 7 % in 41 days before the declaration of integration. Although some of this price movement is likely to stem from merchants who read tea leaves properly, the researchers have Find It is also possible that the price movements of trading stems from internal information.

“There is academic evidence that is widely martyred, which shows that most of the illegal trading inside occurs in front of integration and purchases.” luck. He referred to 1992 Ticket This has been found that 80 % of SEC’s internal trading cases are linked to acquisition attempts.

“Like every time you make a large merger deal, this shit is happening,” said Crypto Treasury Finance Officer, who refused to call it while talking about private commercial transactions. “You always hear how SEC asks people who know what and when.”

Frontal fighting

In recent weeks, companies that adopt the treasury encryption strategies have taken additional measures to prevent “information leakage”.

“It is a bad look for everyone here,” said Camhi, founder of RLH Capital, referring to those who seem to suffer from encrypted cabinet ads. “Therefore, everyone will win this issue.”

He said that McCainshouche, the Karatage hedge fund investor, and his team were aware of the alleged dropout with Sharplink, which is why they decided to contact investors for only two days, not three. He added: “We were aware that the markets are very heavy at the present time, and we tried to operate them in the best and safest way.”

Others went further. This includes CEA Industries, a small public company that focuses on the Vaping Canadian market.

In late July, CEA Industries announced that it had raised $ 500 million to become a company for the BNB Treasury, which is closely related to Burn Checir. “Instead of detecting the CEA industry index while they were conducting a Roadshow offer, Dealmakes gave it to investors on Friday evening after the markets were closed on July 25. He said that the company wanted to” reduce the risk of leaks or leaks or The fluctuations “before announcing the coding axis on Monday.

Just one week later, Verb Technology, a small public company that develops a direct broadcast platform called Market.live, has adopted a similar strategy. In early August, the company announced that it had raised $ 558 million to retain the ton, a coded currency closely related to the TELGRAM Correspondence application. An investor in the company, an investor in the company, who refused to call him while talking about private commercial transactions, said that Dealmakers did not reveal the Verb index until after the markets were closed on Friday evening.

A spokesman for the company refused to comment.

As with CEA Industries, the announcement of Verb appeared immediately before the opening of the markets on Monday, giving only potential leaders the ability to buy shares in pre -market trading.

However, in the four hours that preceded the announcement directly, the arrow jumped approximately 60 %.