Metaplanet Posts $605 Million Loss After Spending Billions on Bitcoin
Metaplanet reported a full-year loss of ¥95 billion ($605 million) on revenue of ¥8.9 billion ($58 million), mainly due to a sharp decline in the value of its 35,100 Bitcoin holdings. The company's Bitcoin, valued at $2.4 billion on Monday, was purchased for nearly $3.8 billion at an average price of $107,000 per Bitcoin, resulting in a 37% unrealized loss. Metaplanet has not bought Bitcoin in 2024 but made large acquisitions in late 2023 when the price was over $100,000. Shares have dropped over 62% in six months, mirroring similar declines in peer firms. Revenue from options premiums jumped significantly, and the company forecasts strong profit growth. To fund Bitcoin purchases, Metaplanet issues both common and preferred shares—recently introducing the MERCURY and MARS series to provide diversified capital-raising and help withstand crypto market volatility. Preferred shares include dividend payments, with a cash reserve established for sustainability. Markets show rising speculation that similar firms may need to sell Bitcoin to raise funds.
