Japan's largest wealth management company Nomura reduces cryptocurrency holdings: Q3 losses and market upheaval

Nomura’s European digital asset subsidiary Laser Digital has reduced its risk exposure to cryptocurrency assets and tightened risk controls after suffering losses in the third quarter due to market volatility.

Despite these measures, Nomura’s net income still declined 9.7% year-on-year to 91.6 billion yen, falling short of analyst expectations. Meanwhile, Bitcoin’s price on February 2nd dropped below $75,000.

01 Market Storm

The cryptocurrency market has recently experienced a sharp correction, with Bitcoin’s price plummeting to around $75,000 today.

This level represents a roughly 39% decline from the all-time high of over $126,000 in October 2025, during which its market capitalization evaporated an astonishing $800 billion.

The market crash was driven by multiple factors. The sudden escalation of geopolitical tensions was the immediate trigger, prompting traders to sell risk assets, including cryptocurrencies, as a liquidity source.

At the same time, a “liquidation trap” was exacerbated by large-scale forced liquidations of leveraged long positions. Data shows that within just a few hours on Saturday, over $850 million in bullish bets were liquidated as prices began to collapse.

Sentiment in traditional financial markets was also affected, with US stock index futures declining across the board after the weekend opening.

02 Nomura’s Decision

In this market storm, Japan’s largest wealth management firm Nomura made clear risk management decisions. The company manages approximately $1.53 quadrillion in client assets, accounting for about 15% of Japan’s domestic market share.

Nomura’s Chief Financial Officer Hiroyuki Moriuchi confirmed that the company has “reduced cryptocurrency positions” in response to unreported losses suffered by its crypto division Laser Digital in the third quarter.

The core of this action is tightening risk controls. Hiroyuki Moriuchi stated, “We have tightened management of positions and risk exposure to curb short-term profit volatility.”

This strategic adjustment occurred shortly after Laser Digital applied for a federal trust bank license in the United States. Despite adopting a defensive stance in the short term, Nomura’s long-term commitment to digital assets remains unchanged.

Hiroyuki Moriuchi emphasized that the company’s “commitment to digital asset-related businesses has not changed,” and expressed hope to “expand its crypto-related activities in the medium to long term.”

03 Underlying Pressures

Nomura’s adjustment of cryptocurrency positions is not an isolated event but a reflection of its overall financial performance and macroeconomic pressures. Despite reducing crypto business risks, the company’s overall profitability still faces challenges.

Alongside the crypto business adjustments, Nomura announced a ¥60 billion share buyback plan, representing about 3.2% of its outstanding shares.

This move may be aimed at signaling confidence in the company’s fundamentals and long-term value, even amid setbacks in some high-risk areas.

Deeper pressures may stem from the macro environment of Japan’s financial markets. Recently, Japan’s bond market experienced a “shock week,” with long-term government bond yields soaring to levels previously unimaginable.

Global markets are concerned that the higher yields on Japanese government bonds have become the new normal, potentially prompting domestic investors to repatriate more funds.

For institutions like Nomura managing large amounts of domestic assets, these macroeconomic changes will inevitably influence their overall asset allocation strategies and risk appetite.

04 Diverging Institutional Movements

Nomura’s cautious approach reflects a defensive stance among some traditional financial institutions amid current market volatility. However, behavior among crypto market participants is showing significant divergence.

Contrasting Nomura’s defensive posture, on-chain data indicates that “whales” (investors holding over 1,000 Bitcoin) have been quietly increasing their holdings.

This group’s Bitcoin holdings have rebounded to levels not seen since late 2024, actively absorbing retail panic sell-offs.

On the other hand, some institutions are observed to be selling. For example, monitoring shows that investment firm Fenbushi Capital withdrew 2,432 Ethereum from exchanges.

This divergence highlights the complexity of the current market. While short-term price swings and liquidation pressures force some participants to cut positions, long-term investors optimistic about the fundamentals see the decline as an accumulation opportunity.

05 Strategies for Gate Users

For traders and investors on Gate, the case of Nomura and the current market environment offer multiple lessons. Understanding the logic behind institutional behavior can help make more rational decisions amid volatility.

The foremost point is that risk management is crucial. Nomura’s tightening of risk exposure aims to “curb short-term profit volatility.” This reminds us that, regardless of market sentiment, clear risk management rules are key to long-term survival.

On platforms like Gate, this means setting reasonable stop-loss levels, avoiding excessive leverage, and diversifying assets.

Second, it is important to distinguish between short-term market sentiment and long-term development trends. Although Nomura is reducing positions in the short term, it remains committed to its digital asset business in the long run. Similarly, blockchain technology continues to expand across various industries.

The current market correction may provide a clearer window for understanding project fundamentals and planning for long-term value.

Future Outlook

Bitcoin’s price briefly fell below $75,000 on February 2nd. Since its all-time high, over $850 million in leveraged long positions have been forcibly liquidated.

Nomura is not the only institution taking action. Its European subsidiary Laser Digital, after suffering losses in the third quarter, is tightening risk controls and applying for a US trust bank license, seeking to balance short-term defense with long-term strategic positioning amid the storm.