Metaplanet Projects First Operating Profit in Seven Years and Launches Bitcoin Treasury Operations

Highlights:

• Metaplanet anticipates its first operating profit in seven years, forecasting 890 million yen in revenue. 
• The company generated substantial revenue through Bitcoin put options and reported unrealized gains.
• Metaplanet’s Bitcoin strategy and hotel operations combined have positioned it for profitability since 2017.

Japanese-listed investment company Metaplanet anticipates its first operating profit in seven years. This comes months after adding BTC to its balance sheet. On December 18, Metaplanet projected a revenue of 890 million yen ($5.8 million) for this fiscal year. This marks a significant increase from last year’s 261 million yen. The firm also expects an operating profit of 270 million yen for the year. Last year, it reported a loss of 468 million yen. 

A significant portion of the revenue, 520 million yen ($3.4 million), was generated from selling Bitcoin put options. Moreover, Metaplanet reported unrealized gains of nearly 7.446 billion yen ($48.6 million) from its BTC holdings. Put options are contracts that let the owner sell an asset at a set price, known as the “strike price.” This helps investors lock in a minimum selling price to prevent losses.

*Metaplanet Projects First Fiscal Year Operating Profit Since 2017* pic.twitter.com/oYNKOtNatR

— Metaplanet Inc. (@Metaplanet_JP) December 18, 2024

In addition to its Bitcoin activities, Metaplanet’s hotel business has contributed to its improved financial performance. Metaplanet, via its subsidiary Wen Tokyo Co., manages the Royal Oak Hotel located in Tokyo’s Gotanda district. The success of both its hotel and Bitcoin strategies has positioned the company to reach profitability for the first time since 2017.

The firm stated:

“Combined with the strong performance of the hotel business, even though the SG&A expenses were expected to be about 385 million yen, the company is on track to record consolidated operating profit for the first time since FY2017.”

Metaplanet Secures Capital and Grows Bitcoin Holdings Through New Bond Issuances

Since adopting Bitcoin as a treasury asset in April 2024, Metaplanet has raised capital for acquisitions. This includes $66 million from stock rights in October, $11.3 million raised through bonds in November, and $62 million from further stock rights later that month.

Moreover, on December 16, Metaplanet announced a 4.5 billion yen ($30 million) bond issuance to acquire more Bitcoin. The platform also plans to issue bonds totaling 5 billion yen. The firm is Asia’s second-largest corporate Bitcoin holder, with 1,142 Bitcoin worth around $119.4 million. 

Metaplanet stock surged after adopting a Bitcoin strategy. On Tuesday, it hit a record high of 4,240 JPY with $180 million in daily trading volume. This boost helped the company reach a $1 billion valuation, with year-to-date gains of 2,100%.

Bitcoin Treasury Operations

Metaplanet aims to go beyond simply accumulating Bitcoin in its treasury management. In a separate investor update on December 18, the company revealed plans to create “Bitcoin accumulation and management” as a distinct unit. The new venture will focus on purchasing, holding, and managing Bitcoin using financial tools like loans, equity, and bonds.

*Metaplanet Adds Bitcoin Treasury Operations as Official New Business Line* pic.twitter.com/T0pfW9PPMV

— Metaplanet Inc. (@Metaplanet_JP) December 18, 2024

Additionally, MetaPlanet has gained access to Bitcoin Magazine in Japan, allowing it to promote Bitcoin education and foster adoption. This positions MetaPlanet as a key player in Japan’s Bitcoin ecosystem.