The stock price of Japan's most expensive securities company is flying high largely in part due to its cryptocurrency business segment.
According to a report by Bloomberg on Wednesday, Monex Group Inc. is currently the most expensive stock on the TOPIX index. The Japanese index is based on all domestic common stocks listed on the Tokyo Stock Exchange (TYO).
The brokerage's venture into cryptocurrency earned the company 2.42 billion yen (US$22.9 million) pretax profit in the quarter ended Dec. 31, 2020, increasing its quarter-on-quarter growth threefold, company filings show.
“People are starting to re-evaluate us,” said the company's CEO, Oki Matsumoto, saying investors are moving beyond the idea Monex is more than just stockbroking, as cited in the report.
Despite bitcoin's 10% dip on Tuesday and Monex's own share price falling 3.9% on Wednesday, the online securities trading company is still well ahead with yearly gains exceeding 131%, TYO data shows.
"The soaring price of bitcoin has spurred trading activity and encouraged more individual investors to jump into the fray," said SMBC Nikko analyst Takayuki Hara in a Feb. 22 note to investors. "There has been sharp growth in earnings at Coincheck."
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.