Japan’s largest stock-exchange operator weighs new restrictions on publicly listed companies that pivot their core business into buying and holding crypto, signaling a potential shift in one of the most active markets for digital-asset treasury (DAT) firms.
Citing anonymous sources familiar with internal deliberations, Bloomberg reported that Japan Exchange Group (JPX) is exploring stricter scrutiny for companies that shift their core business into large-scale crypto accumulation. This includes adding fresh audit requirements and applying backdoor-listing rules to such companies.
The move comes after a wave of losses hit Japan’s DATs, many of which attracted retail investors earlier this year. Metaplanet, Japan’s largest DAT, holding over 30,000 Bitcoin (BTC), saw its shares fall from a year-to-date (YTD) high of $15.35 on May 21 to $2.66 at the time of writing. This marked an 82% drop from its highest value this year.
Japanese nail salon franchiser Convano, which saw a breakout performance in August, now trades at about $0.79 per share, a 61% drop from its high of $2.05 on Aug. 21. BitcoinTreasuries.NET data showed that the company is down nearly 11% on its BTC investment.
Backdoor listing rules would fill a regulatory gap
Applying backdoor listing rules to companies pivoting into crypto accumulation would mark a significant tightening of Japan’s listing standards.
Backdoor listings occur when a private company acquires an already listed shell company to bypass the traditional initial public offering (IPO) route, and JPX already prohibits such maneuvers.
Extending the prohibition to listed firms that shift into crypto-holding vehicles would close a regulatory gap that some DATs may have exploited to evolve their business models.
If JPX formally restricts such pivots, it could slow or halt the listing pipeline for new DATs.
Related: Strategy’s Bitcoin dominance slips in October as corporate treasuries expand
Metaplanet boss highlights governance steps in response to JPX report
Metaplanet CEO Simon Gerovich pushed back against the implication that Bitcoin-accumulating firms may have sidestepped governance or disclosure rules.
In an X post, Gerovich responded to the report, saying that JPX’s concerns are directed at companies suspected of conducting backdoor listings or pivoting into digital assets without proper shareholder approvals. He said this does not apply to Metaplanet.
“In contrast, at Metaplanet we have held five shareholder meetings over the past two years (four extraordinary general meetings and one annual meeting), securing shareholder approval for all critical matters.”
He added that they also amended the company’s articles of incorporation and increased authorized shares to fund BTC purchases. He said that the company adhered to formal governance processes under the same management team that had led the company prior to the pivot.
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