TLDR
- QMMM stock surged 959% in 14 sessions before SEC halted trading.
- SEC cited potential manipulation from social media promotions.
- The suspension will last until 11:59 p.m. ET on October 10.
- QMMM announced a $100M crypto treasury for Bitcoin, Ethereum, and Solana.
- Crypto treasury firms have seen sharp volatility and regulatory scrutiny.
QMMM Holdings Ltd. (Nasdaq: QMMM) last traded at $119.40 on September 26th, as the U.S. Securities and Exchange Commission (SEC) suspended its trading on September 29.
The halt came after the company’s shares soared 959% in just 14 trading sessions, fueled by a new cryptocurrency treasury announcement. The regulator said the pause will last until 11:59 p.m. ET on October 10.
The US SEC suspended trading in QMMM Holdings Ltd. after its shares surged almost 1,000% in less than three weeks, saying the digital media advertising firm’s stock may have been manipulated by touts on social media https://t.co/uba1snezr1
— Bloomberg (@business) September 29, 2025
Social Media Concerns and Manipulation Risks
The SEC flagged concerns that “unknown persons” promoted QMMM stock on social media, urging investors to buy shares without disclosing their identities or timing. The agency suggested these promotions may have artificially inflated the stock price. The move highlights regulators’ growing unease about online hype driving extreme volatility in small-cap firms with crypto-related pivots.
QMMM’s Strategic Crypto Pivot
On September 9, QMMM announced it would establish a diversified cryptocurrency treasury worth $100 million. The plan involves allocating capital into Bitcoin, Ethereum, and Solana, alongside broader ambitions in Web3 infrastructure and digital equity acquisitions. The announcement instantly transformed QMMM’s trajectory, sending its shares from $11 to $207 before retracing about 50% from the peak.
CEO Bun Kwai defended the strategy as a forward-looking shift into blockchain and AI. He called it a move to “bridge the digital economy with real-world applications,” stressing commitments to compliance, partnerships, and sustainable value creation.
Wider Context: Crypto Treasuries Draw Attention
QMMM’s dramatic surge is part of a larger wave of firms announcing crypto treasuries. This year, nearly 85 public companies globally have pursued similar strategies, often using capital raises to accumulate tokens. However, many have faced sharp declines after short-lived rallies. For example, EightCo Holdings surged from $1.50 to $45 in a single session, only to fall back to $11 within weeks.
The SEC also suspended Smart Digital Group shares until October 10, citing similar manipulation concerns. Smart Digital stock collapsed 86% last week after unveiling its own crypto asset pool.
Industry Influence and Investor Caution
Crypto treasury models are often driven by prominent financiers like Mike Novogratz, Dan Morehead, and Joseph Lubin. Their influence has fueled a cycle of capital inflows and token hoarding, frequently boosted by storytelling and hype. Regulators, however, are increasingly intervening to protect investors as speculation meets market reality.
For QMMM, the suspension serves as both a setback and a warning. While its ambitions in crypto and Web3 remain intact, the episode underscores the risks of sudden pivots amplified by retail frenzy and digital promotion. Investors will be watching closely when trading resumes after October 10 to see whether QMMM can sustain credibility beyond the hype.
