Cryptocurrency Treasury Strategies: ASX's take 

Key Insights

Crypto treasury strategies, popularized by US businesses such as Strategy Inc. (formerly MicroStrategy), have been a growing area of interest for financial management teams of listed and unlisted companies.

In the listed context, such strategies are subject to heightened regulatory scrutiny. ASX has clarified its position in the latest Compliance Update, emphasising a "substance over form" approach and flagging a LIC-style listing admission test or the need for shareholder approval for a significant change in business activity.

IPO candidates with crypto treasury strategies will need to approach ASX early to discuss the appropriate tests for listing. Existing listed companies will need to monitor the proportion of cryptocurrency on its balance sheet in case shareholder approval is triggered under ASX Listing Rule 11.

ASX's latest Compliance Update

ASX has issued its latest Compliance Update (29 August 2025), in which it discussed crypto asset-related activities in detail. With a particular focus on the adoption of cryptocurrency treasury strategies, ASX noted a marked increase in listed companies acquiring and holding cryptocurrencies as part of their balance sheet management, often with the stated objective of capital preservation, diversification, or as a speculative investment.

The ASX’s position on cryptocurrency treasury strategies is clear. In summary:

• Substance over form for listed entities: Regardless of how the activity is described by the listed entity (eg, as “treasury management” rather than a core business activity, etc), if crypto holding becomes a principal or material part of the company’s operations, ASX may consider this to trigger a fundamental shift in the company's business focus and require shareholder approval under Listing Rule 11.1.
• Re-compliance with admission tests: ASX may also require a listed entity to re-comply with the admission requirements under the Listing Rules. In doing so, ASX will assess whether the company’s structure and operations remain appropriate for a listed entity (Listing Rule 12.5).
• LIC designation: If the listed entity's principal activity is considered to be crypto asset investment, ASX may treat the company as a crypto asset listed investment company (LIC), subject to additional requirements (and more frequent disclosure obligations). ASX (and ASIC) have been focused on ensuring that such companies compete in a level playing field with crypto asset ETFs.

ASX also emphasises the importance of disclosure in this regard (including but not limited to a Listing Rule 3.1 requirement), noting the company should disclose the objectives of its cryptocurrency asset strategy, details of custody and security arrangements, the proportion of total assets held in crypto and the company's intentions or strategy (and risks) regarding further acquisitions or disposals, and the experience of management in this regard.

ASIC's position on cryptocurrency investments by companies and funds

The ASX Compliance Update is a good reminder of the regulatory concerns outlined over the last few years in relation to cryptocurrency investments by listed (and unlisted) companies and funds.

ASIC has consistently highlighted its concerns, set out in INFO 225 (and the updated INFO 230 from an exchange traded product perspective) being:

• crypto assets may be financial products under the Corporations Act, triggering the financial services and licensing obligations under Chapter 7 of the Corporations Act;
• due to their complexity, the expectations for disclosure, risk management, and governance for a company or fund dealing with crypto assets are greater, especially where these become a material part of a company's business or the fund's portfolio; and
• listed entities must ensure robust and transparent pricing, secure custody, and clear risk disclosures for any crypto asset exposures.

For more information on INFO 225, see our previous article: https://www.ashurst.com/en/insights/asic-consults-on-updated-digital-asset-guidance/.

Companies and funds considering crypto investment strategies

If a company or fund is considering, or already holds, a significant crypto balance—whether before or after listing—it should:

• Consider whether the holding of crypto assets (immediately or over time) could alter the nature or scale of its activities.
• Prepare detailed, ongoing disclosure regarding the objectives of the crypto strategy, risk assessments, management expertise, custody and security arrangements, and the impact on the company’s financial position.
• Seek to ensure that the board and management have demonstrable experience with crypto assets, and that robust risk management and internal controls are in place.
• Be proactive in engaging with the ASX and, where relevant, ASIC, to ensure that all regulatory expectations are met and that the company’s structure remains appropriate for a listed entity.
• Monitor the value and the status of crypto holdings for changes that may trigger further continuous disclosure obligations.