Metaplanet Projects Reports Its First Profit in Seven Years as a Result of Bitcoin Strategy
Metaplanet, a Japanese investment firm, is expected to generate its first consolidated operating profit in seven years as a result of the strategic integration of Bitcoin into its balance sheet, as reported by Cointelegraph.
The company’s revenue projection for the fiscal year ending December 31, 2024 was 890 million Japanese yen ($5.8 million) on December 18. This represents a substantial increase from the 261 million Japanese yen recorded in the previous fiscal year. The company anticipates an operating profit of 270 million Japanese yen, a significant improvement from the 468 million Japanese yen in losses reported last year.
Metaplanet attributes a significant portion of this revenue to the sale of Bitcoin call options, which have generated 520 million Japanese yen. The company announced that it is on course to achieve its first consolidated operating profit since fiscal year 2017, in addition to the strong performance of its hotel business. In April, Metaplanet, a Tokyo-based investment firm that engages in public trading, implemented Bitcoin as a treasury asset to mitigate currency depreciation. The company’s subsidiary, Wen Tokyo Co., also owns and administers the Royal Oak Hotel in Tokyo’s Gotanda district.
In a recent investor disclosure, Metaplanet disclosed the formalization of “Bitcoin accumulation and administration” as a business division. This initiative will entail the utilization of loans, equity, convertible bonds, and other financial instruments to facilitate the acquisition and preservation of Bitcoin. The organization intends to maintain its utilization of put option sales as a significant revenue generator. Put options are contracts that enable the owner to sell an underlying asset to the issuer, Metaplanet, at a pre-agreed value, known as the “strike price.” This approach allows investors to establish a minimum selling price for an asset in order to reduce the risk of potential losses, while Metaplanet receives a premium for each contract sold.
Through its recently acquired license to operate a Japanese version of Bitcoin Magazine, Metaplanet also intends to generate revenue from Bitcoin-related marketing activities. With a holding of 1,142 Bitcoin valued at approximately $119.4 million, the company is the second-largest corporate Bitcoin holder in Asia, following Boyaa Interactive. Metaplanet announced on December 16 that it would issue its fourth bond, which is valued at just under 4.5 billion Japanese yen ($30 million). The purpose of this issuance is to accumulate additional Bitcoin, in addition to plans for a 5 billion Japanese yen private placement ordinary bond issuance.
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