Metaplanet, a Tokyo-based company, has raised 9.5 billion yen ($60.6 million) through bond issuances to advance its Bitcoin treasury strategy. The first tranche of 4.5 billion yen ($28.7 million) was issued earlier this week, followed by a second tranche of 5 billion yen ($31.9 million). Both bonds will mature on June 16, 2025.
CEO Simon Gerovich announced that the funds will accelerate Bitcoin purchases initially planned for 2025. As of December 18, Metaplanet held 1,142.287 BTC valued at approximately $110.3 million, underscoring Bitcoin’s pivotal role in the company’s treasury operations.
Financial Turnaround: First Profit in Seven Years
Metaplanet is forecasting its first operating profit in seven years, with projected revenue of 890 million yen ($5.8 million) for the fiscal year ending December 31. This marks a significant rise from last year’s 261 million yen revenue and a reversal of last year’s 468 million yen loss, now expected to yield a 270 million yen operating profit.
The financial resurgence is driven largely by Bitcoin-related activities, particularly income from selling Bitcoin put options. These options have generated 520 million yen in revenue, aligning with Metaplanet’s strategy to monetize cryptocurrency while continuing to accumulate Bitcoin.
Diversification Enhances Growth
While Bitcoin remains central to its strategy, Metaplanet has diversified its operations. Its subsidiary, Wen Tokyo Co., manages the Royal Oak Hotel in Tokyo’s Gotanda district, contributing stable revenue and supporting sustainable growth alongside cryptocurrency activities.
Despite this progress, Metaplanet’s stock fell 4.24% on the Tokyo Stock Exchange to close at 3,610 yen on Friday. However, its shares have surged 2,023% year-to-date and were recently listed on the U.S. OTCQX market.
Conclusion
Metaplanet’s aggressive Bitcoin strategy and diversification efforts have positioned the company for financial stability and growth. While market reactions remain mixed, the firm’s innovative approach to integrating cryptocurrency with traditional revenue sources underscores its potential as a forward-thinking enterprise.
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.