Nomura Cuts Back on Crypto Strategy! Emergency "Brake" After Q3 Losses, Bitcoin Plunge Triggers Chain Reaction Among Institutions

On February 2, Japan’s largest wealth management firm, Nomura Holdings, announced a decline in third-quarter profits and began to tighten its risk exposure in its European cryptocurrency subsidiary, indicating that traditional financial institutions are reassessing their digital asset strategies amid market volatility. This adjustment occurred as Bitcoin fell below $80,000 over the weekend, with several companies holding large amounts of crypto assets also disclosing billions of dollars in paper losses.

According to foreign media reports, Nomura’s stock price plummeted 6.7% on Monday, the largest single-day decline in nine months. The company’s quarterly net profit as of December 31 decreased by 9.7% year-on-year to 91.6 billion yen. Bloomberg Intelligence analyst Hideyasu Ban believes that the market reaction is more driven by short-term sentiment, compounded by the overall weakness in Asian markets and pressure on the crypto sector.

At the earnings conference, CFO Hiroyuki Mori confirmed that the company is reducing its risk exposure in its Swiss digital asset subsidiary, Laser Digital Holdings. The division turned from profit to loss this quarter, forcing management to strengthen position controls. Nevertheless, he emphasized that Nomura’s long-term commitment to blockchain and digital assets remains unchanged.

Nomura’s international pre-tax profit has been positive for ten consecutive quarters, but due to losses in its European operations, it has seen a significant year-on-year decline. Meanwhile, the wealth management and asset management divisions continue to perform steadily, with both assets under management and recurring revenue reaching record highs. The company also announced a buyback plan of up to 60 billion yen to boost market confidence.

Nomura’s situation is not unique. Several institutions have disclosed large unrealized losses, reflecting the pressure from the deep correction in the crypto market. Despite increased short-term volatility, Laser Digital is still applying for a national bank trust license with U.S. regulators, indicating that it has not abandoned its long-term strategy. Against the backdrop of ongoing integration between traditional finance and digital assets, Nomura’s tightening strategy is seen as a phased defense rather than a full retreat.