Japan Crypto Hoarding Clampdown Hits Metaplanet Shares

The Japan Exchange Group (JPX) is considering measures to limit the growth of “digital-asset treasury” companies (DATs), according to a Bloomberg report. Shares of Tokyo-based Metaplanet, a major Bitcoin treasury firm, have fallen by 7% as a result.

Potential measures being explored by JPX include stricter application of backdoor listing rules, which allow private companies to go public via mergers or acquisitions. JPX may also restrict companies from shifting their business focus to crypto accumulation if initially listed as a traditional business. Audits would be required for companies undergoing such strategic shifts.

Bloomberg notes that no official decision has been made, and these are ongoing internal discussions. While JPX does not currently have a formal ban on crypto accumulation by listed companies, it is actively monitoring associated risks.

Metaplanet famously transitioned from the hotel industry to cryptocurrency in 2024, mirroring the strategy employed by MicroStrategy’s Michael Saylor. The company has amassed 30,000 Bitcoins, with a goal of acquiring as many as 210,000.

The company’s shares have plummeted roughly 75% from their peak in mid-June. This regulatory scrutiny will further complicate Metaplanet’s situation.

Since September, three listed companies have suspended plans to purchase cryptocurrency, concerned that focusing on crypto as a business strategy may restrict their fundraising capabilities, according to the Bloomberg report.

The measures represent growing regulatory concerns surrounding rapid shifts to digital asset accumulation by publicly traded firms in Japan.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.