Metaplanet’s Bitcoin Strategy Persists Amid Share Price Decline

Metaplanet JP3481200008

Despite a significant downturn in its share price, Metaplanet Inc., the Tokyo-listed Bitcoin treasury company, is reaffirming its commitment to aggressively accumulate the cryptocurrency. The firm's stock has faced considerable pressure, shedding approximately 82% of its value since its peak in June. In a recent trading session on February 6, shares closed at 340 Yen, marking a single-day decline of 5.6%.

Key Financial Metrics:
* Bitcoin Holdings: 35,102 BTC, valued at roughly $2.5 billion.
* Average Purchase Price: Approximately $107,000 per Bitcoin.
* Bitcoin Price (Feb. 6): Around $66,270.
* Unrealized Losses: Substantial, with holdings over 40% below their average cost basis.
* Outstanding Debt: About $280 million.

CEO Simon Gerovich has publicly stated the company will continue its Bitcoin purchasing strategy, undeterred by the current market valuation and paper losses on its substantial digital asset portfolio.

Supporting this strategy, Metaplanet's board approved a capital raise of up to 21 billion Yen ($137 million) on January 29. The plan involves issuing 24.53 million new shares at 499 Yen each, accompanied by subscription rights with a fixed exercise price of 547 Yen. Allocation and payment for this offering are scheduled for February 13.

Proceeds from the raise are earmarked for specific uses: an estimated 14 billion Yen ($91.2 million) is allocated for additional Bitcoin acquisitions, while 5.2 billion Yen is designated for debt reduction. This move underscores management's steadfast adherence to its core strategy despite falling prices and a leveraged balance sheet.

Ambitious Long-Term Holdings Target

Metaplanet has rapidly expanded its Bitcoin treasury from 1,762 BTC at the end of 2024 to its current holding of over 35,000 BTC. This growth positions the company as the world's fourth-largest publicly traded corporate holder of Bitcoin. The current leader is Strategy Inc. (formerly MicroStrategy) with 713,502 BTC, followed by MARA Holdings (53,250 BTC) and Twenty One Capital (43,514 BTC).

The company has outlined an ambitious roadmap known as the "555 Million Plan." This initiative aims to amass a total of 100,000 BTC by the end of 2026, with a further target of 210,000 BTC by 2027. Whether these goals are attainable given prevailing market conditions remains an open question.

Quarterly Results Anticipated

Investors are awaiting the company's quarterly financial report, due on February 10. The disclosure is expected to provide details on how Metaplanet accounts for its significant unrealized losses on the balance sheet and may offer further insight into its financing plans. The broader context is a Bitcoin market that has retreated more than 47% from its October record high, a downturn directly reflected in Metaplanet's equity valuation.