Ateam Holdings delivered a stark reminder of corporate Japan’s growing cryptocurrency exposure as third-quarter profits soared while core revenue declined. The digital marketing and entertainment firm reported operating profit jumped 541% to ¥924 million ($6.4 million) for the nine months ended April, even as sales slipped 1.2% to ¥17.97 billion ($123.9 million).
The outsized profit gains stemmed largely from cryptocurrency valuation increases recorded as non-operating income, highlighting how volatile digital assets are increasingly influencing Japanese corporate earnings. Ateam acquired cryptocurrency firm Paddle in November 2024, timing that proved fortuitous as digital asset prices rallied.
The company’s core digital marketing business faced headwinds as major financial services clients reduced advertising budgets and competition intensified. While automotive and moving-related services showed growth, the financial media segment that historically drove revenues continued declining.
Management raised its full-year ordinary profit forecast 30% to ¥1.3 billion ($9.0 million), citing expected continued cryptocurrency appreciation. However, operating profit guidance remained unchanged, acknowledging that crypto-related promotional reserves would offset some gains at the operational level.
The results underscore questions about earnings sustainability when profits increasingly depend on digital asset price movements rather than operational improvements. Japan’s evolving regulatory framework for cryptocurrencies adds another layer of uncertainty for companies like Ateam that have tied their fortunes to volatile digital markets.
