Nomura cuts crypto exposure after Q3 losses

Nomura reduces crypto exposure after steep Laser Digital losses but remains long-term committed.

  • Japanese investment bank Nomura will reduce its crypto risk exposure after losses at its Laser Digital subsidiary.
  • The firm reported a $68.47 million loss from its European crypto ventures in Q3, contributing to a 9.7% drop in net income.
  • Nomura reaffirmed its long-term commitment to crypto but will implement stringent position management in the near term.

Japanese banking giant Nomura announced plans to reduce its cryptocurrency exposure following a turbulent market period and a sharp profit decline, according to reports. The firm’s chief financial officer revealed this strategic pullback on Friday as part of its third-quarter earnings results.

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CFO Hiroyuki Moriuchi stated the company would manage its European digital asset subsidiary, Laser Digital Holdings, more conservatively. He emphasized the firm’s stability would be prioritized through strict position management over the coming months.

However, Moriuchi clarified that Nomura‘s commitment to crypto remains steadfast for the medium-to-long term. The firm reportedly still eyes expansion for its Switzerland-based subsidiary in the future.

The challenging quarter began just before a major crypto market crash in October. Bitcoin” rel=”noopener nofollow”>CoinGecko data shows Bitcoin plunged from a peak of $126,000 to around $88,000 by December’s end.

Consequently, Nomura’s earnings report detailed a 10.6 billion yen ($68.47 million) loss from its European crypto and non-crypto ventures. Its overall overseas profit still reached $105.29 million, but this marked a severe 70% year-on-year decrease.

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The company’s net income fell to $590 million, a 9.7% drop from the same quarter last year. This performance was partly affected by a $1.8 billion acquisition of a Macquarie Group business unit and other corporate expenses.

Meanwhile, Nomura shares on the Tokyo Stock Exchange dropped approximately 6.8% as the market digested the results. Analyst Hideyasu Ban told “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.”

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