Metaplanet’s High-Stakes Bitcoin Strategy: Doubling Down Amid Deep Losses

Metaplanet JP3481200008

Despite carrying significant unrealized losses on its balance sheet, Metaplanet has dramatically accelerated its acquisition of Bitcoin. The company's latest financial disclosures reveal a bold strategy that mirrors industry pioneers but introduces substantial financial risk through its funding methods.

As 2025 drew to a close, Metaplanet executed a major purchase of an additional 4,279 Bitcoin. This transaction required an investment of $451 million (69.855 billion Yen). This acquisition solidifies the firm's standing as the world's fourth-largest publicly traded corporate holder of Bitcoin, with total holdings now reaching 35,102 BTC.

However, this expansion occurred during a market downturn. On December 31, Bitcoin was trading near $88,660, a price substantially below the average purchase price of approximately $105,412 for this most recent tranche. This discrepancy has created a considerable financial strain.

Mounting Unrealized Losses and Operational Metrics

The immediate consequence of buying at higher prices is a portfolio showing unrealized losses exceeding $500 million. Operationally, the company's model continues to generate revenue; its Bitcoin-related income business produced $54 million in revenue for the fiscal year.

Management has highlighted a "BTC Yield" of 568.2% for the full year. This metric is designed to track the growth of Bitcoin holdings per share, emphasizing accumulation over current price valuation.

Financing the Gamble: Debt and Dilution

In pursuing a strategy reminiscent of MicroStrategy, Metaplanet has employed a mix of equity and debt to finance its aggressive buying. The fourth quarter saw the company secure $280 million in Bitcoin-collateralized loans. Concurrently, share dilution occurred through new issuances, increasing the total number of shares outstanding to 1.459 billion.

The use of Bitcoin-backed loans notably elevates the company's risk profile. A significant further decline in Bitcoin's price could trigger liquidation risks for the pledged assets. Undeterred, management reaffirms a long-term goal of accumulating 210,000 BTC by 2027, framing the Q4 price decline of over 22% as a strategic buying opportunity.

Outlook Hinges on Bitcoin's Price Floor

The trajectory of Metaplanet's share price in 2026 appears inextricably linked to Bitcoin's ability to defend a key support level around $88,000. Market participants will closely monitor how the company manages its available credit lines, totaling $500 million, and whether operational cash flow can sufficiently cover debt obligations.

The primary catalyst for a sustained recovery in the stock would be a swift rebound in Bitcoin's price above the company's average cost basis. The current strategy presents a clear dichotomy: is this a disciplined long-term accumulation plan or a dangerous overreach that threatens the company's financial stability?