Metaplanet Stock Down 29% as Bitcoin Bet Delivers $619 Million Loss

TLDR

• Metaplanet reported a $619 million net loss for fiscal 2025, driven by a $665.8 million valuation loss on bitcoin holdings as the crypto asset declined in value
• The Tokyo-based firm now holds 35,102 BTC, up 1,892% from 1,762 BTC at the end of 2024, making it the fourth-largest public corporate bitcoin holder globally
• Revenue surged 738% to $58 million and operating profit jumped 1,695% to $41 million, with 95% of revenue coming from bitcoin-related operations including option transactions
• The company maintains an equity ratio of 90.7% and says its balance sheet could withstand an 86% bitcoin price decline with current holdings valued at $3.1 billion
• Metaplanet faces $1.35 billion in unrealized losses with an average acquisition cost of $107,716 per BTC versus current trading price of $68,821, while shares are down 28.63% year-to-date

Metaplanet reported a net loss of 95 billion yen ($619 million) for fiscal year 2025 ending December 31, marking a dramatic swing from net income of 4.44 billion yen ($28.9 million) the previous year. The Tokyo-based bitcoin treasury company disclosed the figures in its fiscal 2025 earnings presentation released Monday.

The loss stemmed primarily from a 102.2 billion yen ($665.8 million) valuation decline on its bitcoin holdings. The company classifies this as a non-operating expense with no impact on cash flows or operating activities.

Metaplanet Inc., 3350.T

Despite the bottom-line hit, Metaplanet’s operational performance told a different story. Revenue jumped 738% to 8.91 billion yen ($58 million) from 1.06 billion yen ($6.9 million) in the prior year. Operating profit surged 1,695% to 6.29 billion yen ($41 million) from 350 million yen ($2.28 million).

Bitcoin-related operations generated 8.47 billion yen ($55.2 million) in revenue and 7.19 billion yen ($46.8 million) in operating income. The company said premium income from bitcoin option transactions drove most of this growth.

Bitcoin Accumulation Strategy Continues

Metaplanet ended 2025 holding 35,102 BTC, a 1,892% increase from 1,762 BTC at the close of 2024. The accumulation exceeded the company’s fiscal 2025 target of 30,000 bitcoin.

This position represents approximately 0.16% of the total bitcoin supply. The holdings make Metaplanet the fourth-largest public company holder globally and the largest corporate bitcoin holder in Japan.

The company raised 517.2 billion yen ($3.37 billion) cumulatively through the end of 2025 to fund its bitcoin purchases. This included 21.25 billion yen ($138 million) from December’s issuance of Class B perpetual preferred shares.

Metaplanet has set a long-term target of acquiring 210,000 BTC, representing 1% of total bitcoin supply. This remains far below Strategy’s holdings of 714,644 BTC valued at approximately $49.6 billion.

Valuation Pressure Mounts

The company’s average acquisition cost stands at $107,716 per BTC. With bitcoin currently trading at $68,821, Metaplanet faces approximately $1.35 billion in unrealized losses across its entire position.

These paper losses could reverse if bitcoin recovers. However, they highlight the volatility risk tied to corporate treasury strategies concentrated in digital assets.

Metaplanet emphasized the strength of its balance sheet in the earnings presentation. The company said its liabilities and preferred stock would remain fully covered even if bitcoin dropped 86%. An equity ratio of 90.7% supports this cushion.

As of December 31, the company reported liabilities of 46.7 billion yen ($304.2 million) and net assets of 458.5 billion yen ($2.99 billion). Bitcoin holdings were valued at 481.5 billion yen ($3.1 billion).

The shareholder base expanded from 47,200 at the end of 2024 to around 216,500 by year-end 2025. Total assets rose from 30.3 billion yen ($197.89 million) to 505.3 billion yen ($3.30 billion) over the same period.

Metaplanet’s share price fell 28.63% year-to-date, reflecting how closely the company’s equity performance tracks bitcoin’s price movements. Other corporate bitcoin holders face similar pressure, with MicroStrategy reporting unrealized losses exceeding $5.33 billion.

For fiscal year 2026, Metaplanet forecasts revenue of 16 billion yen ($104 million) and operating profit of 11.4 billion yen ($74.3 million). This represents year-over-year growth of 79.7% and 81.3% respectively. The company is not providing forecasts for ordinary income or net income due to bitcoin price volatility.

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