Japan exchange warns: If companies dare to transform into DAT, it will limit your fundraising space.

Recently, more and more listed companies in Japan want to learn from the MicroStrategy (Strategy) model and transition to digital asset financial companies (DAT). This trend has also alerted the Japan Exchange Group (JPX), which is concerned about investors bearing excessive risks and is considering implementing stricter “shell listing” rules, even requiring companies to undergo re-audits and raising fundraising thresholds. Since September, at least three Japanese companies have paused their token storage plans due to JPX's opposition.

Listed companies are crazily hoarding coins, JPX starts to take control.

This year, after the cryptocurrency market has warmed up, Japan has seen a wave of DATs imitating MicroStrategy. So far, Japan has 14 listed Bitcoin DATs, ranking first in Asia. As seen in the image below:

“Publicly listed companies and institutions collectively hold about 80,000 BTC, making it the fourth largest country in the world by Bitcoin DAT, while also ranking first in Asia.”

However, these Bitcoin DATs have significantly fallen back after the middle of this year, causing substantial losses for many retail investors and attracting high attention from JPX and regulatory agencies.

JPX stated in a written response that while there is currently no explicit ban on listed companies hoarding coins, they are already focused on companies that may pose risks and have opaque governance, with the aim of protecting shareholders and investors.

Is there a restriction on DAT expansion? Internal discussions at JPX.

According to several informed sources, JPX is researching stricter rules for reverse mergers and is also evaluating whether to require these companies to undergo re-audits, which has not yet been finalized. JPX originally prohibited reverse mergers, but is now discussing whether to expand the scope to:

“If a listed company directly turns its core business into hoarding coins, it may be regarded as a similar operation to reverse merger.”

Therefore, JPX intends to limit companies from transforming their main business into accumulating crypto assets by using “transforming into coin holding”.

Three companies have been advised to suspend their coin purchasing plans.

One insider revealed that since September of this year, three listed Japanese companies originally planned to start accumulating coins in large quantities, but due to opposition from JPX, they had to put their plans on hold. JPX has further informed these companies:

“If companies take hoarding coins as their main business, it will reduce their fundraising space in the market in the future.”

It also means that JPX does not want these companies to issue new shares for fundraising while hoarding coins with the money.

Japan's DAT stock price has seen a significant drop, resulting in heavy losses for many retail investors.

Japan has long been a major hub for DAT in Asia due to its relatively open stance towards cryptocurrency companies. However, with the cryptocurrency market experiencing significant fluctuations since mid-July, many DATs have faced substantial corrections in recent months, resulting in substantial losses for many retail investors.

Among them, Japan's largest Bitcoin DAT, Metaplanet, has transformed from the hotel industry to Bitcoin DAT since 2024, holding over 30,000 Bitcoins. Its stock price soared by 420% at one point this year, but has since plummeted by more than 75% since its peak in mid-June.

Another nail salon company, Convano, plans to purchase 21,000 bitcoins, with its stock price dropping by about 60% since late August. Neither company has commented to the media.

Asia is generally tightening, while Japan is relatively loose.

In contrast to Japan, Hong Kong and other Asia-Pacific exchanges have consistently refused to allow DAT to be listed, making Japan the country with the most listed DAT in Asia, with a total of 14 companies using Bitcoin as their corporate asset reserve.

JPX's recent actions are seen by outsiders as Japan's first step towards reducing DAT.

(DAT is the key driver of the coin price decline? Crypto professor: Overfunding and excessive token circulation will ruin the project ).

This article warns that Japanese exchanges: companies that dare to transform into DAT will limit your fundraising space. First appeared in Chain News ABMedia.