Major DAT companies respond to updates: - Bitmine BMNR said it’s unaffected because we’re listed on NYSE, not Nasdaq. Bug exploited successfully. - Sharplink SBET said it’s got nothing to do with us. Even though we’re Nasdaq-listed, we can still issue ATMs legally and compliantly. The ones affected are the 'new DAT' companies. Regulatory rule interpretation: - Nasdaq’s rules are essentially emphasizing the enforcement of regulatory Rule 5635(a) and Rule 5635(d) in the crypto space: 1️⃣ Rule 5635(d) specifies that for private placements (like PIPEs), shareholder approval is required when issuing common stock or convertible/exercisable securities that meet the following conditions: a. The total issued amount + related party issuance equals or exceeds 20% of common stock or voting power; b. And the issuance price is below the 'Minimum Price.' Many listed companies raising funds through PIPEs to acquire crypto-related assets may fall under Rule 5635(d). Nasdaq now requires clearer, upfront shareholder approval for such cases. 2️⃣ Rule 5635(a) states that if the total amount of issued shares or securities (including convertible or exercisable ones) equals or exceeds 20% of pre-acquisition common stock or voting power (excluding private cash transactions), shareholder approval is also required. Some DAT-type listed companies issuing shares as consideration for transactions with counterparties like foundations (e.g., CAST acquiring Story IP Token as reported in media releases) are likely to be considered equity-based acquisitions by Nasdaq. This falls under Rule 5635(a) and requires shareholder approval. Why doesn’t ATM buying $BTC/$ETH get affected? First, ATMs involve selling shares at market price publicly, which only requires board approval and doesn’t fall under the private placement regulations of Rule 5635(d). Second, the counterparties are $BTC, $ETH, and other assets purchased at market price on exchanges from non-specific parties. These counterparties are not institutions/foundations, so such transactions won’t be defined as equity-based acquisitions under Rule 5635(a).