Metaplanet Discloses $28 Million Gain on Bitcoin Holdings, Stock Slides

Metaplanet disclosed Monday a $28 million jump in its Bitcoin holdings since it began buying up the asset, surpassing the company’s market capitalization at the start of the year. 

Since late September, the Tokyo-based firm has more than doubled its Bitcoin acquisitions, increasing from 492.82 BTC to 1,018.17 BTC by mid-November, according to a Q3 financial report.

It's a strategy that's proven favorable for the firm as its comes amid a fresh crypto rally this year. Bitcoin is up by more than 105% this year to $87,000.

In October alone, Metaplanet acquired over 156 BTC for around $10 million, bringing its cumulative investment in the world’s largest crypto to $64 million.

Dubbed "Asia’s MicroStrategy," Metaplanet is exploring Bitcoin options trading to generate premium income using cash or Bitcoin as collateral, seeks to boost operational income, and expand its holdings.

Last month, Metaplanet adopted a metric similar to MicroStrategy's "BTC Yield" as its official Key Performance Indicator (KPI) to assess how Bitcoin acquisitions impact shareholder returns. 

“We intend to continue increasing our Bitcoin holdings through capital market activities and operational income as deemed appropriate,” Metaplanet wrote in the report.

Despite the increase in the value of its Bitcoin holdings, Metaplanet reported a net loss of $2.1 million for the nine months ending September 30, 2024, an improvement from a loss of $2.7 million in the same period last year, as per the report.

However, revenue increased by 46.3% year-over-year to $1.7 million, driven by Metaplanet’s hotel business and digital asset ventures. The firm did secure over $26.7 million through stock issuances and bond offerings this year, as the company’s financial reports show.

Metaplanet’s stock dropped 5% on Tuesday, with shares slipping to 1,766 JPY (US$11.41) in early Asian hours trading.

Edited by Sebastian Sinclair