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Sharms from Smart Digital Group drop by 87% after crypto turn!
Smart Digital Group Suffers 87% Stock Drop Following Crypto Announcement. Causes, reactions and regulatory investigations in focus.
Sharms from Smart Digital Group drop by 87% after crypto turn!
On October 4, 2025, the Smart Digital Group experienced a dramatic decline in its share price by 87%. This decline followed the announcement that the company is striving for a diversified cryptocurrency. The announcement was particularly aimed at Bitcoin and Ethereum, two prominent cryptocurrencies, which investors supposedly took up as risky diversion and thus contributed to the negative market development.
The reaction of investors was very negative, which is partly due to the inaccurate and vague details of the announcement. In contrast, other companies that took similar steps had experienced an increase in their share prices during their announcements. Based on information from Crypto News It is pointed out that the company unveiled its strategy for investing in cryptocurrency plants on September 26 and that Bitcoin and Ethereum were stable and transparent.
Previous price movements
Before this crucial announcement, market analysts already observed a dramatic drop in stock of the Smart Digital Group. On September 25, the share price fell from $ 13.60 to $ 1.88, which corresponds to a decline of 86.84%. Usually companies that make similar strategic announcements in the area of crypto treasury lead to an increase in stock prices. For example, companies have seen an average increase of 150% within 24 hours after such announcements.
An example of a successful change of strategy in the industry shows Brera Holdings, whose stocks rose by 464% after they announced a change to a Solana-based digitized asset sports folio. Juizizi Holdings also had an increase of $ 1 billion for a Bitcoin treasury of $ 1 billion. These successes illustrate how important clear financing concepts, prominent supporters and precise operating plans are that were missing in the announcement of smart digitally.
Regulatory studies
The uncertainty caused by the vague wording of the announcement led to concerns about unpredictable risks and diluted corporate direction. In addition, regulatory institutions such as the SEC and FINRA are on the lookout and are taking a look at the trading of over 200 companies that have announced plans in the crypto treasury space. This investigation focuses specifically on suspicious price increases prior to public announcements, indicating possible insider trading violations.
The pre-Announcement trade activities of the Smart Digital Group, which were associated with a significant decline in the share price, add another dimension of systematic risks, which public companies are entering into when they get involved in crypto pivots.