Metaplanet Launches Bitcoin Treasury Operations and Reports First Profit Since 2017
Public-listed firm Metaplanet, also known as Japan's MicroStrategy, launched a Bitcoin Treasury operations business line aimed at accumulating Bitcoin as part of its financial management strategy.
Bitcoin Treasury Management Strategy
Metaplanet's Board of Directors has prioritized Bitcoin treasury management. The company’s “Bitcoin First, Bitcoin Only” strategy focuses on using long-term debt and periodic equity issuances to acquire Bitcoin as an alternative to the depreciating Japanese yen. The primary performance metric is BTC Yield, which measures changes in total Bitcoin holdings relative to outstanding shares. To enhance BTC Yield, Metaplanet will use various capital-raising instruments such as loans, equity issuances, and convertible bonds for Bitcoin purchases.
Since starting its Bitcoin accumulation in May 2024, Metaplanet has acquired over 1,000 Bitcoins within six months. Recently, it announced plans to issue approximately 4.5 billion Yen in bonds to expedite Bitcoin acquisition efforts. The company is also engaged in Bitcoin options trading to generate income during price volatility while increasing its Bitcoin holdings.
Financial Performance and Stock Surge
CEO Simon Gerovich reported that Metaplanet is nearing its first operating profit since 2017, attributed to strong hotel business performance and Bitcoin-related activities. This marks a significant milestone, indicating a potential turnaround in the company's financial outlook.
The profit forecast excludes unrealized gains from Bitcoin holdings, estimated at ¥7.4 billion. Gerovich stated that achieving profitability would enable the company to invest newly raised funds directly into Bitcoin acquisitions rather than covering operational costs. The company’s stock has surged since adopting the Bitcoin strategy, reaching a record high of 4,240 JPY with daily trading volumes of $180 million. Year-to-date gains for Metaplanet stock have reached 2,100%, resulting in a valuation of $1 billion.