Nomura Reduces Crypto Exposure After Q3 Profit Decline, Cites Market Turbulence

Nomura Reduces Crypto Exposure After Q3 Profit Decline, Cites Market Turbulence

Japanese banking giant Nomura will temporarily reduce its exposure to cryptocurrency following a significant drop in profits during the third quarter, the company announced Friday. Chief Financial Officer Hiroyuki Moriuchi stated that Nomura would lower its risk exposure at Laser Digital Holdings, its Switzerland-based digital asset subsidiary, after the unit posted losses during the quarter ending December 31.

The reduction comes as Nomura grapples with broader market headwinds that impacted its overseas ventures. The company’s crypto and non-crypto European operations combined to produce a 10.6 billion yen ($68.47 million) loss on its balance sheet during Q3. Despite this setback, Nomura’s overall overseas ventures generated 16.3 billion yen ($105.29 million) in profit—a 70% decrease compared to the same period last year.

Bitcoin experienced significant volatility during Q3, plunging from its October 6 peak of $126,000 to approximately $88,000 by the end of the year, according to CoinGecky data. This market downturn directly impacted the performance of crypto-focused operations across the financial sector.

Moriuchi emphasized that the temporary reduction represents a tactical response to near-term market conditions rather than a strategic shift away from digital assets. “We will manage our stability through stringent position management over the next few months,” he said, adding that Nomura’s long-term commitment to cryptocurrency expansion remains unchanged.

Nomura’s net income for the quarter reached 91.6 billion yen ($590 million), representing a 9.7% decline from Q3 2024. The company’s financial results were also influenced by its $1.8 billion acquisition of Macquarie Group’s U.S. and European public asset management business, along with expenses tied to a stock buyback program.

Market reaction to the announcement was swift and negative. Nomura shares on the Tokyo Stock Exchange fell approximately 6.8% on Monday following the earnings release and crypto exposure reduction announcement. The decline reflected investor concerns about both the company’s financial performance and its reduced crypto positioning.

Hideyasu Ban, senior analyst at Bloomberg Intelligence, attributed the stock sell-off to multiple factors. “There is a vague sense of unease about the overall market direction, and that seems to have combined with the surprise on the crypto front to set off selling,” he told The Japan Times on Sunday.

The move illustrates the challenges facing institutional investors in the cryptocurrency space during periods of market volatility. While traditional financial institutions have increasingly allocated capital to digital assets over recent years, periods of significant price correction prompt tactical withdrawals to manage risk exposure.

Nomura reaffirmed its medium to long-term growth objectives for Laser Digital Holdings despite the near-term pullback. The subsidiary continues to operate across multiple cryptocurrency and blockchain-related business lines, positioning the company for potential expansion once market conditions stabilize.

More Reads:

Crypto Volatility Explained for Long-Term Investors

Bitcoin slides below $88,000 as risk-off sentiment sweeps crypto markets

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