Bitcoin Treasury Giant Metaplanet Sinks 7% as Japan Eyes Crypto Hoarding Clampdown
The Japan Exchange Group (JPX) is reportedly considering measures to limit the growth of digital-asset treasury companies (DATs), potentially through stricter backdoor listing regulations and mandatory audits for companies pivoting to cryptocurrency. This comes amidst concerns over risks related to crypto accumulation by listed firms. Tokyo-based Bitcoin treasury firm Metaplanet, which shifted from hotels to crypto and holds 30,000 Bitcoins, has seen its shares plunge by 7% and is now down 75% from its mid-June peak. Regulatory scrutiny is complicating the situation, and some companies have paused crypto-related plans due to fundraising concerns. JPX has yet to make any official decision.
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JPX's Plans to Regulate Digital-Asset Treasury Companies
The Japan Exchange Group (JPX) is reportedly considering measures to control the growth of red-hot "digital-asset treasury" companies (DATs), according to Bloomberg. These companies, which focus on accumulating vast amounts of cryptocurrency, have raised concerns within regulatory circles.
Potential Measures Under Consideration
JPX is exploring several options to tighten regulations:
- Stricter rules on backdoor listings, which allow private companies to go public via mergers or acquisitions without a standard IPO.
- A potential ban on companies pivoting to crypto accumulation if they were originally listed as traditional businesses.
- Mandatory audits for firms that change their business focus to cryptocurrencies.
It is important to note that these discussions remain private, and no official decisions or formal bans have been made. However, JPX is actively monitoring potential risks associated with this trend.
Impact on Metaplanet's Stock Price
Metaplanet, a Tokyo-based company and one of the largest Bitcoin treasury firms, has been heavily impacted by market fluctuations. The company's shares recently plunged by 7%, marking a significant downturn amid growing regulatory pressures. This highlights the volatile nature of the crypto market and its influence on related companies.
Metaplanet's Crypto Strategy and Decline
Metaplanet gained attention in 2024 when it transitioned from a hotel business to a major crypto player, following the strategy of Michael Saylor's MicroStrategy. The company managed to accumulate an impressive 30,000 Bitcoins, with an ambitious goal to acquire 210,000 coins overall. Despite its initial success and massive rally in 2024, the firm's shares have now collapsed by roughly 75% since their mid-June peak.
Regulatory Concerns and Broader Industry Impact
The increasing regulatory scrutiny has placed additional pressure on Metaplanet and similar businesses. Since September, three listed companies have reportedly paused plans to buy cryptocurrencies, as crypto-centered business strategies could limit their ability to secure funding. This regulatory pushback is expected to further complicate the prospects of firms like Metaplanet, signaling a challenging environment ahead for the broader digital-asset treasury industry.