Nomura Reduces Crypto Exposure Amid Q3 Profit Decline

Japanese banking giant Nomura has announced plans to temporarily reduce its exposure to digital assets following a drop in third-quarter profits. The decision comes as the company navigates a challenging crypto market and seeks to manage short-term financial risks while maintaining long-term strategic goals in the sector.

Q3 Losses and Crypto Market Impact

Nomura’s European crypto subsidiary, Laser Digital Holdings, reported losses in the quarter ending December 31, prompting management to adopt stricter risk controls. The firm’s CFO, Hiroyuki Moriuchi, emphasized that while the subsidiary was affected by market turbulence, Nomura remains committed to digital assets and plans to expand its Switzerland-based operations over the medium to long term.

The third quarter coincided with a major crypto market crash that saw Bitcoin fall from a peak of $126,000 in early October to around $88,000 by year-end. These losses contributed to a 10.6 billion yen ($68.5 million) deficit across Nomura’s European ventures, though the firm still recorded overall overseas profits of 16.3 billion yen ($105 million), representing a 70% year-over-year decline.

Broader Financial Performance

Nomura posted a net income of 91.6 billion yen ($590 million) for Q3, down 9.7% from the previous year. Part of this decrease was tied to strategic acquisitions and a $1.8 billion purchase of Macquarie Group’s asset management business, as well as stock buyback-related expenses. Following the results, Nomura shares fell nearly 7% on the Tokyo Stock Exchange, reflecting investor concern over both crypto exposure and overall market uncertainty.

Despite the short-term reductions in crypto holdings, Nomura maintains a long-term commitment to digital assets, focusing on measured growth and risk management in its European subsidiaries.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.