Japan’s Bitcoin Crackdown: Metaplanet Says It’s Different From The “Backdoor” Crowd

What Happened

Japan Exchange Group is exploring measures to limit listed digital-asset treasury companies, citing investor protection concerns as crypto-hoarding stocks suffer steep losses.

The bourse does not currently have blanket regulations against corporate crypto accumulation but is “monitoring companies that raise concerns from a risk and governance perspective, with a view to protecting shareholders and investors,” a JPX representative wrote in an email to Bloomberg.

Crypto treasury stocks modeled after Michael Saylor’s Strategy Inc. have collapsed from earlier highs, leaving retail investors with heavy losses.

The potential crackdown was sparked by concerns that the recent decline in local digital-asset treasury shares has harmed domestic investors.

Market Context

Market Tumble Draws Regulatory Scrutiny

Market analysis flagged widespread distress across the sector, with K33 Research reporting that a quarter of all public companies holding Bitcoin now trade at market values below their token holdings.

He pointed out that Strategy quickly clarified that “the new NASDAQ policy on forming digital asset treasuries will not impact Strategy, our ATM program, or other capital market activities.“

Financial Transformation Continues Despite Volatility

Why It Matters

Tokyo Stock Exchange operator JPX is considering stricter backdoor listing rules and fresh audit requirements for firms pivoting to cryptocurrency accumulation, according to people familiar with the matter who spoke to Bloomberg.

Three listed Japanese companies have shelved plans to buy cryptocurrencies since September, after the JPX warned that their fundraising abilities would be restricted if they pursued crypto strategies.

Details

Strategy’s shares have roughly halved since mid-July despite the company holding a Bitcoin pile worth over $60 billion.

While Hong Kong and other Asia-Pacific exchanges have resisted new digital-asset treasury listings, Japan has 15 public Bitcoin buyers, the most in Asia.

Tokyo-listed Metaplanet, Japan’s largest operator, has plunged over 75% from its mid-June peak after surging 420% earlier in the year. Nail salon operator Convano, which targets 21,000 Bitcoin, is down approximately 60% since late August.

JPX is exploring whether to extend its existing backdoor listing prohibition to companies shifting core operations to crypto accumulation.

A backdoor listing typically involves a private company going public through a merger or acquisition, thereby bypassing the normal initial public offering (IPO) process.

Metaplanet Defends Governance Approach

Metaplanet CEO Simon Gerovich pushed back against being grouped with firms lacking proper governance.

“Metaplanet has held five general meetings of shareholders over the past approximately two years (including four extraordinary general meetings of shareholders and one ordinary general meeting of shareholders), and has proceeded with all important matters with the approval of shareholders,” Gerovich said.

He emphasized that these processes “have been consistently carried out in accordance with proper procedures under the management team that has continued since before the business transition.” Gerovich added.

Dylan LeClair, Metaplanet’s Head of Bitcoin Strategy, noted parallels with the recent shareholder approval requirements for crypto acquisitions by NASDAQ.

LeClair explained that companies with established governance frameworks that consult shareholders through proper procedures can continue operations without disruption.

“This regulation targets cases of rapid pivots without shareholder consent, and bitcoin treasury companies with properly functioning governance were exempt,” he said.

Metaplanet pivoted from hotels in early 2024 and accumulated over 30,000 Bitcoin, making it the world’s fourth-largest public Bitcoin holder.

The company reported a dramatic financial transformation in Q3 2025, posting sales revenue of 4,517 million yen ($29 million), up 1,702% year-over-year, and an ordinary profit of 23,229 million yen ($150M), after incurring a loss of 311 million yen ($2M) the previous year.