Nearly $2 Billion in Nintendo Stock Is About to Change Hands

Nintendo is preparing for a massive shift in its shareholder base, with roughly $1.9 billion worth of stock set to be sold by a group of long-time strategic holders. The move, arriving as a signal that Japan’s cross-shareholding era is still unwinding, is poised to reshape Nintendo’s ownership profile, which could have long-term impacts on the gaming giant.

Nintendo’s shareholder base is dominated by trust and custody accounts that hold shares on behalf of underlying investors, with a second tier of large international custodians and asset managers. Based on the company’s latest stock information disclosure dated September 2025, The Master Trust Bank of Japan’s trust account is the largest named holder, accounting for about 16.29% of the ownership. Saudi Arabia’s Public Investment Fund became Nintendo’s largest foreign shareholder in 2023. It is unclear whether it still holds that title three years later because it has since reduced its stake in the company to 4.19%.

Nintendo’s Strategic Shareholders Line Up a $1.9 Billion Sale

Nintendo disclosed on February 27 that a group of shareholders—including major Japanese banks—will sell a large block of its stock as part of an “unwinding of strategic shareholdings,” as first reported by Reuters. The deal uses Friday’s closing price and is valued at ¥290 billion, which equates to approximately $1.9 billion based on the February 28 exchange rates. As such, it affects around 2.8% of outstanding Nintendo stock. The Bank of Kyoto, Resona Bank, and mobile gaming giant (and long-time Nintendo partner) DeNA are among the companies selling shares as part of the initiative.

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The seller list matters because it is a textbook example of Japan’s cross-shareholding model: companies and financial institutions owning stakes in one another to reinforce business ties. The practice dates back to the immediate post-World War 2 era, but regulators and the Tokyo Stock Exchange have pushed firms to reduce it in recent years. Nintendo framed the transaction as part of that broader unwind, echoing a corporate governance trend that has accelerated among Japanese blue chips. This is not the first large-scale offloading of Nintendo shares by banks; a similar initiative saw financial institutions sell ¥71 billion of Nintendo stock in 2019.

One key open question is whether Nintendo will also pare back its own holdings in the institutions now selling Nintendo stock, which is often the other half of “strategic” cross-holdings. Nintendo’s announcement focuses on counterparties selling Nintendo shares, but current disclosures do not make it clear whether Nintendo plans to sell any shares it may hold in those banks as part of a reciprocal unwind. Regardless, the move matters because it puts a rare, bank-held position in one of Japan’s most widely owned blue chips into play at once, while also testing how much demand exists for Nintendo shares after a volatile stretch for the stock.

Nintendo’s Largest Shareholders

In immediate trading after the Reuters report and Nintendo’s confirmation, Nintendo shares closed up nearly 3%, while Kyoto Financial Group’s shares jumped by almost 10%, suggesting investors saw the transaction as supportive for at least some participants. Separately, Nintendo announced plans to buy back ¥100 billion (~$645 million) worth of its stock, up to 14 million shares. The move will cushion the impact of the added supply created from the sale.

Why Nintendo Fans May Care About This Deal

In the immediate term, the stock sale is unlikely to have a material impact on Nintendo’s operations. However, as strategic holders step back and the ownership mix becomes more market-driven, Nintendo may face increased scrutiny over profitability, pricing, release cadence, and capital allocation, supported by a large liquidity buffer that includes ¥1.71 trillion in cash and deposits as of September 30, 2025.