Metaplanet’s Bitcoin Bet Weighs on Its Balance Sheet

Metaplanet JP3481200008

The Japanese investment firm Metaplanet is facing mounting pressure on its aggressive "Bitcoin-First" strategy as turbulence rocks the cryptocurrency sector. A significant correction in digital asset prices has led to billions in unrealized losses accumulating on the company's books, unsettling investors who see a growing gap between high purchase prices and current market valuations.

The scale of the financial burden becomes clear upon examining Metaplanet's holdings. The company currently possesses 35,102 Bitcoin, acquired at an average price of approximately $107,716 per coin. The sharp decline in Bitcoin's market value has locked in substantial paper losses for the firm. Estimates place this unrealized deficit at around 39%, equating to a book loss of nearly $1.45 billion—a development that heavily impacts the firm's balance sheet structure.

Share Price Reflects Bitcoin Correlation

Selling pressure has directly impacted Metaplanet's share price, which exhibits a strong correlation to Bitcoin's movements. In Tokyo trading on Friday, the equity declined by 5.56 percent to 340 Yen. The stock also showed weakness in European markets, trading at around €1.60 on Tradegate. This downturn follows Bitcoin's own volatility; the cryptocurrency briefly plunged 17% on Thursday to a low of $60,057. It has since been trading in a range between $65,000 and $70,470—a level far removed from its October 2025 all-time high above $126,000.

Leadership Commits to Strategy Amid Losses

Despite the challenging environment, CEO Simon Gerovich has reaffirmed the company's chosen path. The strategy remains unchanged: Metaplanet will continue its steady accumulation of Bitcoin while working to expand revenue streams. The ambitious target of growing its holdings to 100,000 units by the end of 2026 is still in place.

To finance this plan, the company is preparing a capital increase of roughly 21 billion Yen (approximately $135 million). These funds are earmarked for additional Bitcoin purchases and debt servicing. This move follows a recent equity financing round that raised 12.2 billion Yen.

A Sector-Wide Challenge

Metaplanet is not alone in confronting these difficulties. Its U.S. counterpart, MicroStrategy, reported significant losses for the fourth quarter of 2025, primarily due to impairments on its digital asset holdings. The current market climate, characterized by outflows from ETFs and a broader sense of risk aversion, is testing the resilience of all firms with substantial crypto exposure.

Metaplanet's approach of using capital raises and debt to invest further in volatile assets during a price downturn significantly elevates the company's risk profile. The ultimate success of this strategy is now inextricably linked to a prompt and sustained recovery in the price of Bitcoin.

@ boerse-global.de | JP3481200008 METAPLANET’S