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In summary
- Metaplanet integrated the Bitcoin Buying Strategy as a key business, but its shares fell 13.73% following market concerns.
- The firm holds 1,142,287 BTC ($119M) and projects a 240% increase in revenue by 2024, after years of operating losses.
- Metaplanet generates additional income with Bitcoin put options and educational marketing through Bitcoin Magazine Japan.
Shareholders did not respond well after Japanese investment firm Metaplanet announced the addition of its Bitcoin Treasury Operations as a new core business line.
After months of preparation and shareholder approvals, the company is doubling down on Bitcoin (BTC), both as a financial asset and as a revenue generator, as the world’s largest Cryptocurrency reaches new highs. On Tuesday, Bitcoin established a new all-time high above $108,000.
However, despite the ambitious announcement, Metaplanet shares, which trade under the ticker 3350 on the Tokyo Stock Exchange, fell 13.73% on Tuesday, according to data from Google Finance.
The drop reflects mixed investor sentiment about the company’s Bitcoin-focused strategy and market concerns about Bitcoin volatility.
With this pivot, Metaplanet said it aims to increase its Bitcoin holdings while hedging against the weakening Japanese yen and taking advantage of long-term debt and equity issuances.
“Looking ahead, Metaplanet is committed to its role as the leading Bitcoin Treasury company in Japan, recognizing its responsibility as a pioneer in the country’s crypto ecosystem,” the company said in a statement on Tuesday.
As part of this move, Metaplanet will focus on the purchase, holding and management of Bitcoin through financial instruments such as loans, equity issues and convertible bonds.
To measure the efficiency of these acquisitions, the firm adopted BTC Yield in October. It is a performance metric that evaluates growth in Bitcoin holdings relative to shareholder dilution.
In addition to accumulation, Metaplanet generates income by selling Bitcoin put options, taking advantage of the asset’s volatility to strengthen its financial position.
The Tokyo-based firm will also use its exclusive license to Bitcoin Magazine Japan to create new revenue streams through marketing and educational initiatives, integrating Bitcoin into its business operations.
The company has raised more than $140,000 since October through equity issuances, bond offerings and share rights exercises. It recently issued interest-free bonds worth $30,000 (¥4.5 billion) to support further Bitcoin acquisitions.
On Tuesday, Metaplanet revealed its forecast for the fiscal year ending Dec. 31, projecting $5.8 million (¥890 million) in revenue, up from $1.7 million (¥261 million) a year earlier, marking an increase of 240%.
Operating profit is expected to reach $1.8 million (¥270 million), a recovery from the $3 million (¥468 million) loss reported in 2023.
“Combined with the strong performance of the hotel business (…) the company is on track to record a consolidated operating profit for the first time since fiscal 2017,” the firm stated.
At the time of writing, Metaplanet holds 1,142,287 BTC, valued at $119 million, making it one of the largest corporate Bitcoin holders in Japan.
Edited by Stacy Elliott.
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