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Ruholamin Haqshanas
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Ruholamin Haqshanas
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Japanese investment firm Metaplanet is poised to achieve its first consolidated operating profit in seven years, just months after incorporating Bitcoin into its balance sheet.
The Tokyo-based firm announced on December 18 that it expects to generate 890 million Japanese yen ($5.8 million) in revenue for the fiscal year ending December 31, a significant increase from the 261 million yen recorded in the previous fiscal year.
The company’s operating profit is projected to reach 270 million yen, a sharp turnaround from the 468 million yen loss it suffered last year.
A substantial portion of Metaplanet’s revenue comes from its Bitcoin-related activities, particularly its strategy of selling Bitcoin put options.
This approach generated 520 million yen in income, making it a key driver of the company’s improved financial outlook.
Put options allow investors to sell an asset at a pre-agreed strike price, and Metaplanet earns a premium for each contract sold, regardless of whether the option is exercised.
If exercised, the company can acquire Bitcoin at the agreed price, aligning with its broader strategy of accumulating the cryptocurrency.
The firm’s decision to adopt Bitcoin as a treasury asset began in April, part of a shift aimed at hedging against currency depreciation.
Beyond its Bitcoin-related activities, Metaplanet’s hotel business has also played a role in its improved financial performance.
Through its subsidiary, Wen Tokyo Co., the company operates the Royal Oak Hotel in Tokyo’s Gotanda district.
The combined success of its hotel operations and Bitcoin strategy has put the company on track to achieve profitability for the first time since 2017.
Looking ahead, Metaplanet plans to formalize its Bitcoin accumulation efforts as a standalone business line.
According to its December 18 disclosure, the firm will pursue “Bitcoin accumulation and management” as a distinct unit.
The strategy includes leveraging loans, equity, convertible bonds, and other financial instruments to acquire and hold Bitcoin. The company also intends to maintain its reliance on Bitcoin put option sales as a significant revenue source.
Metaplanet’s ambitions extend beyond treasury management. It aims to create revenue streams from Bitcoin-related marketing activities.
To support this initiative, the company recently secured a license to operate a Japanese version of the crypto-focused news outlet, Bitcoin Magazine.
The firm’s growing commitment to Bitcoin has made it Asia’s second-largest corporate Bitcoin holder, trailing only Boyaa Interactive.
As of its latest update, Metaplanet holds 1,142 Bitcoin, valued at approximately $119.4 million.
To support its Bitcoin accumulation strategy, Metaplanet issued its fourth bond offering on December 16, raising nearly 4.5 billion yen ($30 million).
The company also announced plans for a 5 billion yen private placement of ordinary bonds.
Aside from Metaplanet, other major corporate Bitcoin holders like MicroStrategy have been continuously expanding their Bitcoin holdings.
Earlier this week, MicroStrategy acquired 15,350 Bitcoin, valued at approximately $1.6 billion, bringing the company’s total Bitcoin holdings to 439,000 Bitcoin (currently over $46 billion).
