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.

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.