Nomura Strategically Reduces Crypto Exposure as Q3 Profits Plunge Amid Market Turbulence

TOKYO, February 3, 2025 – Japanese financial giant Nomura Holdings has implemented a temporary reduction in its cryptocurrency market exposure following a significant decline in third-quarter profits, marking a strategic pivot as global digital asset markets face renewed volatility. This decision represents a calculated risk management move by Asia’s largest investment bank, balancing long-term blockchain ambitions against immediate financial pressures.

Nomura’s Strategic Crypto Pullback

Chief Financial Officer Hiroyuki Moriuchi confirmed the exposure reduction during Friday’s earnings announcement, specifically targeting the firm’s European digital asset subsidiary, Laser Digital Holdings. Consequently, this strategic adjustment follows reported losses at the Switzerland-based operation during the quarter ending December 31, 2024. Importantly, Moriuchi emphasized that Nomura maintains its fundamental commitment to digital assets while implementing stringent position management over coming months.

The banking giant’s third-quarter performance revealed substantial challenges. Specifically, overseas ventures contributed 16.3 billion yen ($105.29 million) in profit, representing a dramatic 70% decrease from the same period in 2023. Meanwhile, European operations, encompassing both crypto and traditional ventures, recorded a 10.6 billion yen ($68.47 million) loss on the balance sheet.

Market Context and Timing Factors

Nomura’s third quarter coincided with severe cryptocurrency market turbulence. According to CoinGecko data, Bitcoin (BTC) plummeted from its October 6 peak of $126,000 to approximately $88,000 by December 31. This 30% correction created challenging conditions for institutional crypto operations globally. Furthermore, traditional financial markets exhibited parallel instability, compounding pressure on diversified financial institutions.

The bank’s overall net income reached 91.6 billion yen ($590 million), reflecting a 9.7% year-over-year decrease. However, this figure includes substantial one-time expenses. Notably, these expenses encompass a $1.8 billion acquisition of Macquarie Group’s US and European public asset management business and costs associated with a stock buyback program.

Analyst Perspectives on Institutional Crypto Strategy

Financial analysts interpret Nomura’s move as indicative of broader institutional approaches to digital assets. Hideyasu Ban, a senior analyst at Bloomberg Intelligence, told The Japan Times that “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.” This sentiment manifested in Nomura’s Tokyo Stock Exchange shares dropping approximately 6.8% following the earnings announcement.

Institutional cryptocurrency adoption has followed a non-linear trajectory since 2020. The table below illustrates key phases:

Laser Digital’s Role and Future

Laser Digital Holdings, established in 2022, represents Nomura’s primary vehicle for digital asset innovation. The subsidiary operates three core business lines:

• Asset Management: Crypto-focused investment products for institutional clients
• Venture Investing: Strategic investments in blockchain infrastructure
• Proprietary Trading: Market-making and quantitative strategies

Despite current challenges, Moriuchi reaffirmed Nomura’s medium to long-term expansion plans for the Swiss subsidiary. This commitment aligns with increasing European cryptocurrency regulation clarity, particularly Switzerland’s progressive digital asset framework. Additionally, other Japanese financial institutions continue exploring digital asset opportunities, though with varying risk appetites.

Comparative Institutional Approaches

Nomura’s calibrated pullback contrasts with other financial institutions’ strategies. For instance, Metaplanet recently approved a $137 million overseas raise specifically for Bitcoin acquisition and debt repayment. Meanwhile, traditional asset managers like BlackRock maintain steady cryptocurrency ETF offerings despite market fluctuations.

Regional differences also emerge clearly. Hong Kong progresses with stablecoin regulatory frameworks in Q1 2025, while Singapore maintains cautious oversight. Japanese regulators, historically conservative toward crypto, increasingly recognize digital assets’ strategic importance while emphasizing investor protection.

The Profitability Challenge in Crypto Banking

Institutional cryptocurrency operations face unique profitability hurdles. These challenges include:

• High compliance and security infrastructure costs
• Volatility-driven revenue unpredictability
• Regulatory uncertainty across jurisdictions
• Talent acquisition and retention expenses
• Technology integration with legacy systems

Nomura’s experience highlights these operational realities. The bank must balance innovation investment against quarterly earnings expectations—a tension familiar to traditional financial institutions entering emerging technology sectors.

Market Implications and Forward Outlook

Nomura’s decision carries symbolic weight beyond its immediate financial impact. As a bellwether for Asian institutional finance, its actions influence regional market sentiment. The temporary exposure reduction suggests several market realities:

First, institutional crypto participation remains sensitive to traditional financial performance metrics. Second, even committed players implement defensive strategies during volatility periods. Third, the digital asset ecosystem continues maturing but hasn’t fully decoupled from broader market dynamics.

Looking forward, several factors will shape Nomura’s digital asset trajectory:

• Global cryptocurrency regulatory developments
• Bitcoin and Ethereum market recovery timelines
• Traditional financial market stability
• Competitive moves by other institutional players
• Technological advancements in blockchain infrastructure

Conclusion

Nomura’s temporary reduction in crypto exposure represents a pragmatic response to intersecting challenges: declining quarterly profits, cryptocurrency market turbulence, and broader financial uncertainty. However, the firm’s reiterated commitment to digital assets signals continued institutional belief in blockchain technology’s long-term potential. As markets evolve, Nomura’s balanced approach—managing short-term risks while maintaining strategic positioning—may offer a template for traditional financial institutions navigating digital asset integration. Ultimately, the coming quarters will reveal whether this calibrated pullback enables stronger future positioning in the rapidly transforming financial landscape.

FAQs

Q1: Why did Nomura reduce its crypto exposure?
Nomura implemented a temporary reduction in cryptocurrency exposure primarily due to losses at its European digital asset subsidiary, Laser Digital Holdings, during Q3 2024. Additionally, overall quarterly profits declined by 9.7%, prompting strategic risk management adjustments amid volatile market conditions.

Q2: Does this mean Nomura is abandoning cryptocurrency?
No, Nomura’s CFO explicitly reaffirmed the company’s long-term commitment to digital assets. The exposure reduction represents a temporary, tactical adjustment rather than a strategic withdrawal. The bank continues planning medium to long-term expansion for its Switzerland-based crypto subsidiary.

Q3: How much did Nomura lose on crypto ventures in Q3?
Nomura’s European operations, including both crypto and non-crypto ventures, recorded a 10.6 billion yen ($68.47 million) loss on its balance sheet for the quarter ending December 31, 2024. The company hasn’t disclosed exact figures separating crypto-specific losses from traditional venture losses.

Q4: How did cryptocurrency markets perform during Nomura’s Q3?
Cryptocurrency markets experienced significant turbulence during Nomura’s third quarter. Bitcoin dropped approximately 30% from its October peak of $126,000 to around $88,000 by December’s end. This correction created challenging conditions for institutional crypto operations globally.

Q5: How have Nomura’s shares reacted to this news?
Nomura’s shares on the Tokyo Stock Exchange dropped approximately 6.8% following the Q3 earnings announcement. Analysts attribute this reaction to combined concerns about overall market direction and unexpected cryptocurrency-related losses, triggering investor selling pressure.