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Metaplanet Bitcoin Holdings Helps Company Earn $28 Million in Profit

Key Points:

Tokyo-based Metaplanet Bitcoin holdings grew by $28 million, doubling to 1,018.17 BTC since late September.
Despite increasing Bitcoin value, Metaplanet reported a $2.1 million loss for 2024 so far.

Tokyo-based investment company Metaplanet saw the value of its Bitcoin surge by $28 million, now larger than its market capitalization at the beginning of this year.

Metaplanet Bitcoin Holdings Soar Amid Crypto Rally

Since the beginning of its plan to accrue Bitcoin back in May, Metaplanet Bitcoin holdings have expanded from 492.82 BTC at the end of September to 1,018.17 BTC by the middle of November, a twofold increase. Reflected in its Q3 financial report, the investment comes at a time when the recent crypto rally has seen Bitcoin’s values rise.

In October, Metaplanet purchased another 156 BTC at close to $10 million, which brought its total investment in Bitcoin to $64 million. The company’s decision to use Bitcoin as a treasury asset also represents a broader move to hedge against risks of low interest rates in Japan, high levels of government debt, and depreciation of the yen. For these purchases, Metaplanet has issued stock, issued bonds, and taken a 10 billion yen loan.

New KPI Estimates Impact of Bitcoin on Shareholder Returns to Metaplanet

Appointed “Asia’s MicroStrategy” given its highly aggressive Bitcoin strategy, Metaplanet focuses on getting premium income through options trading on Bitcoin. Metaplanet also adopted a performance metric similar to MicroStrategy’s “BTC Yield” as a Key Performance Indicator (KPI).

While Metaplanet Bitcoin holdings have increased substantially, the company has its struggles, with a net operating loss of $2.1 million for the first three quarters of 2024. As such, prior valuation losses on Bitcoin affected current financials. Currently, gains offset much of that impact.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.