Metaplanet gains $28m in Bitcoin, yet shares dip

Metaplanet's Bitcoin holdings exceeded 1,000 BTC, gaining a valuation of $28 million, making it a leading corporate Bitcoin holder in Asia.
The firm implemented a MicroStrategy-style acquisition strategy, raising capital via stock issuances, bond offerings, and loans to increase its BTC reserves.
Metaplanet shares tumbled 9.1% on Wednesday as the company reported a net loss of $2.1 million for the first three quarters of 2024.

On Wednesday, Metaplanet, a Japanese investment firm, reported a $28 million increase in the valuation of its Bitcoin holdings due to its ongoing investments in the cryptocurrency. Metaplanet's Bitcoin reserves now exceed 1,000 BTC.

The valuation increase stems from an acquisition strategy launched mid-year, similar to the US-based MicroStrategy's method of accumulating significant Bitcoin reserves.

Metaplanet has now become one of Asia’s top corporate Bitcoin holders, exceeding a $64 million investment milestone. Despite this achievement, Metaplanet’s stock fell 9.1% on Wednesday, indicating ongoing financial pressures on the firm.

Metaplanet’s expanding Bitcoin holdings

Metaplanet started acquiring Bitcoin as a treasury asset in May to address the declining yen and challenges from low interest rates and high national debt.

Metaplanet quickly increased its Bitcoin holdings to 1,018.17 BTC by late October, with total investments close to $64 million. The firm's Bitcoin acquisition strategy included gradual purchases financed by stock issuances and bond offerings, featuring a recent 10 billion yen loan for BTC investments.

As of the end of September, Metaplanet held 492.82 BTC, increasing by 156 BTC in October. During this month, the company invested about $10 million in Bitcoin, taking advantage of a time when its price rose to $87,000.

Metaplanet is increasing its BTC reserves and trading options on its Bitcoin holdings, generating premium income to boost returns beyond standard asset appreciation.

本日時点で、メタプラネットのビットコイン保有に関する評価益は42億7千万円に達しました。この評価益は、年初時点での当社の時価総額を上回る金額となっております。
As of today, Metaplanet's valuation gain on its Bitcoin holdings is JPY 4.27 billion ($28 million). This gain is larger… https://t.co/JJ7ce6FJKZ pic.twitter.com/X2XXAltPh4
— Simon Gerovich (@gerovich) November 13, 2024

Metaplanet posted a net operating loss of $2.1 million for the first three quarters of 2024, as rising operational costs offset gains. Revenue increased 46.3% year-over-year to $1.7 million, but expenses from the hotel business led to an operating loss of 183 million yen ($1.23 million).

The company noted Bitcoin valuation losses from earlier periods, but recent gains have mostly offset these impairments.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.