Metaplanet Secures Fresh Capital Amid Bitcoin Price Decline and Mounting Paper Losses

Metaplanet JP3481200008

The Japanese corporate Bitcoin holder Metaplanet is moving forward with its accumulation strategy, obtaining an additional $50 million in capital through its existing credit facility. This decision comes as the company faces significant unrealized losses on its cryptocurrency holdings, raising questions about its financial resilience in a weaker market.

On December 5, 2025, Metaplanet drew down $50 million, bringing the total utilized amount to $280 million out of an available $500 million credit line. The loan is collateralized by a portion of the firm's treasury, which holds 30,823 Bitcoin with a current market value of approximately $2.82 billion.

Management has outlined three primary uses for the new capital: further Bitcoin acquisitions, expansion of income-generating operations, and potential share buybacks should market conditions become favorable. A key focus is bolstering the firm's revenue engine, which involves writing Bitcoin options against its holdings.

Operational Performance Provides a Silver Lining

Despite pressure from falling Bitcoin prices, Metaplanet's core business segment showed notable strength in Q3 2025. Over 95% of the company's revenue originated from its "Bitcoin Income Generation" activities. By selling put options, it generated about $14.7 million (2.3 billion yen), doubling its income from the previous quarter.

Furthermore, the company is preparing to issue Class B preferred shares, dubbed "MERCURY," which are slated to begin trading on the Tokyo exchange by December 29. Offering a fixed dividend yield of 4.9%, this move leverages Japan's low-interest-rate environment to secure financing at a lower cost than many international rivals.

A Dramatic Shift in Valuation and Investor Sentiment

The company's financial standing vividly reflects cryptocurrency market volatility. Metaplanet is currently sitting on substantial paper losses. Its average Bitcoin purchase price is around $107,911 per coin. With Bitcoin trading near $89,000, this translates to an unrealized loss of roughly $17,000 per Bitcoin.

This marks a stark reversal from earlier in the year. In early October, the books showed over $600 million in unrealized gains. That position has now flipped to approximately $530 million in paper losses, directly correlating with Bitcoin's 25% decline from its October peak.

The market's valuation of Metaplanet shares has undergone a parallel contraction. Earlier this year, the stock traded at a premium of 237% to the net asset value (NAV) of its Bitcoin holdings. That premium has now collapsed to just about 6%.

This compression suggests growing investor skepticism toward the treasury model during market downturns. Even U.S. competitor Strategy Inc. now trades at a 15.5% discount to its Bitcoin NAV—a first in its history as a treasury vehicle. Metaplanet's internal policy states that share repurchases become an option when its stock trades below its intrinsic value.

Ambitious Goals Amid Market Headwinds

Management remains committed to its long-term accumulation targets despite the stock having lost around 70% of its value over the past six months. The corporate strategy aims to expand its Bitcoin holdings to 100,000 by 2026, with an ultimate goal of reaching 210,000 by the end of 2027.