Metaplanet’s Bitcoin Bet Faces $1.4B Paper Loss as Shares Slide 62%
Japanese Bitcoin treasury firm Metaplanet has reported a steep annual loss after the recent downturn in crypto markets eroded the value of its sizable Bitcoin reserves.
In its latest earnings disclosure, the company posted a full-year net loss of ¥95 billion (about $605 million) on revenue of ¥8.9 billion ($58 million). The red ink was largely driven by a sharp decline in the market value of its 35,100 Bitcoin, which were worth approximately $2.4 billion as of Monday.
Metaplanet has spent nearly $3.8 billion building its Bitcoin position over the past 21 months, acquiring coins at an average price of roughly $107,000. With Bitcoin now trading well below those levels, the firm is sitting on an unrealized loss estimated at $1.4 billion—around 37% below its aggregate purchase cost. In the final quarter ending December 31 alone, the company recorded a ¥102 billion ($664 million) markdown on its crypto holdings.
Stock Performance Mirrors Crypto Exposure
The company’s shares closed at ¥326 on Monday, according to Yahoo Finance data, marking a decline of more than 62% over the past six months. The drop has tracked closely with the slump in shares of Strategy, which have fallen about 65% over the same stretch.
Despite the losses tied to Bitcoin’s price swings, Metaplanet’s core operating business—centered on generating premiums through options writing—showed notable growth. Annual revenue from that segment surged to ¥7.9 billion ($51 million), up sharply from ¥691 million ($4.5 million) the previous year. Management is forecasting an 81% increase in full-year operating profit from that division.
Aggressive Buying at Peak Prices
Metaplanet began adopting a Bitcoin-focused treasury model months before a broader wave of corporate buyers entered the market. Inspired by the playbook of Strategy chairman Michael Saylor, the Japanese firm accelerated purchases during Bitcoin’s rally above $100,000.
In September, the company expanded its holdings by 25% with a $630 million purchase when Bitcoin was trading around $106,000. It followed that move with another $615 million acquisition in October at prices near $108,000. So far this year, however, it has not disclosed any additional purchases.
New Capital Strategy: Preferred Shares
To finance its Bitcoin strategy, Metaplanet has relied heavily on issuing common equity. More recently, it has diversified its funding sources by introducing preferred share offerings, including instruments dubbed MERCURY and MARS.
The firm describes MERCURY as Japan’s first issuance of its kind, aimed at creating a more resilient capital structure during crypto downturns. Both preferred share classes carry dividend obligations, prompting comparisons to Strategy’s own funding model, which has drawn scrutiny over long-term dividend sustainability.
As market volatility persists, investors are closely watching how aggressively Bitcoin treasury companies continue to accumulate—or whether balance sheet pressures may eventually force them to adjust course.