Metaplanet Reports $605 Million Loss After Betting Big On Bitcoin ⋆ ZyCrypto

Metaplanet, Japan’s largest Bitcoin-buying (BTC) firm, has become the latest to report financial strain after the cryptocurrency’s price tumbled from record highs in October.

In an earnings presentation on Monday, Metaplanet posted a net loss of 95 billion yen ($605 million) for the fiscal year ending Dec. 31. The deficit was primarily due to a 102.2 billion yen ($665.8 million) markdown on Metaplanet’s Bitcoin holdings, which the company treats as a non-operating expense, indicating it does not affect cash flow or core operating activities, according to its financial disclosure.

Since launching its Bitcoin accumulation strategy 21 months ago, Metaplanet has invested nearly $3.8 billion in the digital asset, with an average acquisition cost of approximately $107,000 per coin. The former hotel operator transcended its fiscal 2025 goal of 30,000 Bitcoin, closing the year with 35,102 BTC — a staggering 1,892% climb from 1,762 BTC at the end of 2024. For perspective, that haul represents 0.16% of the total 21 million Bitcoin supply and makes Metaplanet the fourth-biggest corporate BTC holder worldwide.

Notably, the company is currently facing a 37% paper loss, amounting to roughly $1.3 billion in unrealized losses. During the three months ending Dec. 31, Metaplanet reported that its Bitcoin holdings declined in value by ¥102 billion, or about $664 million.

Metaplanet reported that its Bitcoin-related activities produced 8.47 billion yen ($55.2 million) in revenue and 7.19 billion yen ($46.8 million) in operating income, primarily driven by premiums earned from Bitcoin option transactions.

Despite swings in its net income, Metaplanet highlighted the strength of its capital position. The company stated that its balance sheet remains “robust,” with liabilities and preferred stock fully covered even in the scenario of an 86% drop in Bitcoin prices, supported by an equity ratio of 90.7%.

Metaplanet Maintains Bitcoin-Focused Approach Despite Market Volatility

Metaplanet characterized its strategy as a long-term Bitcoin treasury model, aiming to “acquire and hold Bitcoin permanently to hedge against fiat currency dilution and benefit from long-term value appreciation.”

Metaplanet CEO Simon Gerovich indicated earlier this month that the company will continue its Bitcoin-centric strategy, despite a steep downturn across the broader crypto market. In a post on X, he emphasized that recent volatility would not prompt any change in the firm’s approach.

The Tokyo-listed company has established a long-term goal of acquiring 210,000 Bitcoin by 2027, equivalent to roughly 1% of the asset’s total circulating supply.