Metaplanet Projects First Profit In Seven Years Amid Bitcoin Strategy

According to Cointelegraph, Japanese investment firm Metaplanet anticipates achieving its first consolidated operating profit in seven years, following its strategic addition of Bitcoin to its balance sheet. On December 18, the company projected revenue of 890 million Japanese yen ($5.8 million) for the fiscal year ending December 31, 2024, a significant increase from the 261 million Japanese yen recorded in the previous fiscal year. The firm expects an operating profit of 270 million Japanese yen, a turnaround from the 468 million Japanese yen in losses reported last year. Metaplanet attributes a substantial portion of this revenue to its Bitcoin put options sales, which have generated 520 million Japanese yen. The company stated that alongside the robust performance of its hotel business, it is on track to record a consolidated operating profit for the first time since fiscal year 2017. Metaplanet, a publicly traded Tokyo-based investment firm, made a significant shift towards Bitcoin in April, adopting it as a treasury asset to hedge against currency depreciation. The firm also owns and operates the Royal Oak Hotel in Tokyo’s Gotanda district through its subsidiary, Wen Tokyo Co. In a recent investor disclosure, Metaplanet announced the establishment of "Bitcoin accumulation and management" as a formal business line. This initiative will involve employing loans, equity, convertible bonds, and other financial instruments to efficiently purchase and hold Bitcoin. The company plans to continue utilizing put option sales as a key revenue driver. Put options are contracts that allow the owner to sell an underlying asset at a pre-agreed value, known as the "strike price," to the issuer, Metaplanet in this case. This strategy enables investors to secure a minimum selling price for an asset to mitigate potential losses, while Metaplanet earns a premium for each contract sold. Metaplanet also aims to generate revenue from Bitcoin-related marketing activities through its newly acquired license to operate a Japanese version of Bitcoin Magazine. The firm is the second-largest corporate Bitcoin holder in Asia, following Boyaa Interactive, with a holding of 1,142 Bitcoin valued at approximately $119.4 million. On December 16, Metaplanet announced its fourth bond issuance, valued at just under 4.5 billion Japanese yen ($30 million), to accumulate more Bitcoin, alongside plans for a 5 billion Japanese yen private placement ordinary bond issuance.