Investment firm Metaplanet is on course for its first-ever consolidated operating profit in seven years as a result of the strategic move to add Bitcoin to its balance sheet. The Tokyo-based firm estimates that it will make revenues of 890 million Japanese yen ($5.8 million) in the financial year ending on December 31, up from 261 million yen in the previous financial year.
Metaplanet says it expects to make an operating profit of 270 million yen, a turnaround from the 468 million yen loss it made in 2011. The bulk of this improvement is due to the firm’s Bitcoin-related activities, such as the sale of Bitcoin put options. By following this method, the company has earned 520 million yen, and Bitcoin has been a cornerstone of its financial recovery.
Metaplanet Profits From Bitcoin Strategy And Hotel Operations
The Metaplanet can earn a premium for contracts sold, regardless of whether the options are exercised, using put options. The company exercises the company acquires Bitcoin at a pre-determined strike price aligned to its long-term goal of accumulating cryptocurrency as a treasury asset. In April, Metaplanet started this strategy to capture the upside of Bitcoin’s growth and protect against currency depreciation.
Metaplanet’s financial turnaround is also due to its hotel business outside Bitcoin. The company operates the Royal Oak Hotel in the Gotanda district of Tokyo via its subsidiary, Wen Tokyo Co. All combined, Bitcoin-related activities and hotel operations have the firm on track to its first year of profitability since 2017.
*Metaplanet Projects First Fiscal Year Operating Profit Since 2017* pic.twitter.com/oYNKOtNatR
— Metaplanet Inc. (@Metaplanet_JP) December 18, 2024
According to Metaplanet, it wants to institutionalize its Bitcoin operations by setting up a ‘Bitcoin accumulation and management’ business unit. Financial instruments including loans, equity, and convertible bonds, are used to buy and hold Bitcoin. The company also plans to keep relying on Bitcoin put option sales as a primary revenue driver.
Metaplanet intends to further monetize its expertise around Bitcoin by promoting Bitcoin-related marketing activities. Only weeks ago the firm received a license authorizing it to operate a Japanese version of Bitcoin Magazine, a crypto-focused news outlet indicating its attempt to forge a strong place in the news provider market for Bitcoin-related news.
And then the amount of Bitcoin held [by Metaplanet]: Metaplanet is now Asia’s second largest corporate Bitcoin holder, with 1,142 Bitcoin valued at about 119.4 million dollars. In the region, only Boyaa Interactive has more Bitcoin staked.
On December 16, it returned to issuing a 4.5 billion yen ($30 million) bond offering in support of its Bitcoin accumulation efforts and also announced it would seek to float 5 billion yen ($30 million) worth of private placement ordinary bonds. The goal of these moves is to create the liquidity to increase its Bitcoin portfolio even further.
In fact, Metaplanet’s strategy resembles major global leaders like MicroStrategy, which just purchased 15,350 Bitcoin for $1.6 billion and now has 439,000 Bitcoin, a total of $46 billion. Metaplanet’s growing portfolio continues to affirm that it will be a player in Bitcoin as more companies look to Bitcoin as their treasury asset.
By transforming Metaplanet, we illustrate the optimistic role that Bitcoin can play in corporate financial plans. In the years to come, the company will be able to sustain its profitability by using innovative financial instruments and diversifying revenue streams. The growing maturity of Metaplanet’s Bitcoin-focused business lines will likely increase its footprint in the crypto sphere, solidifying its standing as a major corporate Bitcoin holder in Asia.
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