Investor Skepticism Shadows Japan’s Crypto Recovery Gamble

Japan’s financial markets made headlines in late September 2025 as the Nikkei 225 briefly exceeded 45,000 for the first time, driven by strong performance in U.S. technology stocks and continued investor optimism in domestic AI and semiconductor sectors. However, the market’s positive momentum contrasted sharply with the performance of Ureru Net Ad Group (TSE:9235), which saw its shares plunge by 11.7% following the announcement of a new Bitcoin-focused subsidiary, Bitcoin Savior Co.

The newly established subsidiary, set to launch in December 2025, aims to specialize in digital asset recovery services, assisting individuals and corporations in regaining access to lost or inaccessible cryptocurrency wallets and blockchain-based assets. Ureru Net Ad stated that Bitcoin Savior will offer 24/7 online support and charge a success-based fee of 40% of recovered assets. The company highlighted that an estimated 3.7 million Bitcoins—valued at approximately 60 trillion yen—are currently unreachable due to lost passwords or private keys. This initiative marks the first time a publicly listed Japanese firm has entered the digital asset recovery market.

Despite the strategic significance of the venture, analysts noted that the market reacted cautiously, with investors prioritizing short-term earnings visibility over long-term potential in the crypto space. The stock initially rose on the announcement but reversed course amid profit-taking and concerns over the new venture’s immediate impact. Other Japan-listed crypto-related stocks, such as Ceres (3696) and Metaplanet (3350), showed modest gains, while Eole (2334) surged 16.10% due to company-specific factors.

Ureru Net Ad’s broader financial performance also came under scrutiny. The company reported a significant net loss of 394 million yen for the second quarter of the fiscal year ending in July 2025, far worse than the 73 million yen loss in the prior period. For the full fiscal year, its consolidated net income was revised downward from an expected profit to an estimated loss of 394 million yen. This financial underperformance, combined with the mixed reaction to its crypto venture, raised concerns about the company’s near-term profitability and capital allocation strategies.

The Nikkei 225’s rally on September 16, however, was fueled by a broader trend in global technology investing. Strong gains in U.S. semiconductor and AI stocks carried over to Tokyo, where domestic investors showed a similar appetite for tech-driven growth. The index closed at 44,902.27, up 0.30% for the day. Analysts attributed the rise to ongoing investment in AI infrastructure, semiconductors, and automation, sectors that have outperformed traditional Japanese industries in recent quarters.

Japan’s semiconductor industry, despite having dropped from nearly 50% of the global market in the 1980s to around 9% today, remains a critical backbone of the global chip ecosystem. Japanese firms dominate in semiconductor materials, equipment, and niche areas like automotive and industrial chips. The government has pledged over $70 billion in funding for semiconductor and AI development through 2030, including backing for Rapidus, a state-supported chipmaker aiming to produce 2nm chips by 2027. As the global market grows, Japan is positioning itself as a strategic player in the next phase of chip innovation.

In summary, while Japan’s broader market remains optimistic about tech-driven growth, Ureru Net Ad’s foray into the crypto recovery space highlights the sector’s uncertain trajectory. With Bitcoin Savior targeting a nascent but growing demand for asset recovery services, the long-term impact on Ureru Net Ad’s financial performance remains to be seen. Meanwhile, the broader Nikkei 225 continues to benefit from global semiconductor and AI tailwinds, reinforcing investor confidence in Japan’s evolving tech landscape.