Metaplanet Faces Mounting Pressure as Bitcoin Holdings Sink Deep Into the Red

Metaplanet JP3481200008

Japan's premier corporate Bitcoin holder, Metaplanet, is navigating a severe test of its treasury strategy. A sharp decline in the cryptocurrency's value, which tumbled to approximately $60,000 on February 5, 2026, has pushed the market price significantly below the company's average acquisition cost. Despite the resulting substantial unrealized losses, Chief Executive Simon Gerovich affirmed to shareholders on February 6 that the firm's accumulation policy remains firmly in place.

The volatility in digital asset markets has inflicted heavy paper losses on Metaplanet's balance sheet. The company's treasury holds 35,012 BTC, purchased at an average price of around $102,207 per coin. With Bitcoin currently trading in the low $60,000s, the value of the holdings sits roughly 40% below their carrying cost.

For the fiscal year ending December 31, 2025, Metaplanet reported an extraordinary impairment charge of 104.6 billion yen (approximately $680 million), directly attributed to Bitcoin price fluctuations. The flash crash to $60,000 marked the digital asset's lowest point since October 2024, representing a drop of over 50% from its all-time high.

Leadership Commits to Long-Term Strategy Amid Turmoil

In a public statement on the social media platform X, CEO Gerovich acknowledged the challenging environment. He recognized that recent price volatility is distressing for shareholders but emphasized Metaplanet's commitment to steadily advancing its Bitcoin operations. The company's focus, he stated, is on expanding revenue streams and preparing for its next growth phase.

Capital Raise Bolsters Treasury for Future Purchases

Positioning itself to weather the storm and continue its strategy, Metaplanet concluded a significant equity fundraising round in late January 2026. The company has already issued shares worth 12.2 billion yen ($79.5 million), with the potential to raise up to a total of 21 billion yen ($137 million) when including one-year subscription rights.

The financing structure is designed to support the core business:
* The issuance of 24.53 million shares at a 5% premium.
* Series 25 warrants, exercisable between February 16, 2026, and February 15, 2027.
* Allocation of roughly 14 billion yen ($91.2 million) specifically for additional Bitcoin acquisitions.

A further 5.2 billion yen ($33.8 million) is earmarked for the partial repayment of a $500 million credit facility, of which about $280 million had been drawn down as of January 28, 2026.

Aggressive 2025 Expansion Contrasts Current Climate

The present difficulties stand in stark contrast to Metaplanet's aggressive expansion throughout the previous year. The firm dramatically increased its Bitcoin position from 1,762 BTC at the start of 2025 to 35,102 BTC by year's end—a twentyfold multiplication of its holdings.

Furthermore, its Bitcoin income business, which generates revenue through derivatives and options trading, is projected to contribute 8.58 billion yen ($57.8 million) in earnings for fiscal 2025. This figure surpasses an earlier forecast of 6.8 billion yen ($44 million).

Market Competition Intensifies

Metaplanet operates in an increasingly crowded field. The growing number of public companies adopting crypto treasuries is, according to industry observers, fragmenting both market attention and available liquidity. The coming months will prove critical in determining whether the company's strategy of unwavering accumulation during a volatile period will ultimately deliver value.