Metaplanet’s Bitcoin Strategy Drives $5.8M Revenue, 1,142 BTC Holdings
Metaplanet, a Tokyo based company, has had a great quarter with a Bitcoin focused strategy and made 580 million yen (5.8 million USD) in revenue.
A big part of that is from their innovative use of Bitcoin put options which made 520 million yen in profit.
Put options allow the company to sell contracts at a fixed price and earn premium regardless of whether the option is exercised. If exercised Metaplanet can buy Bitcoin at a good price which aligns with their overall strategy to hold Bitcoin as a treasury asset.
This started in April and is to hedge against currency depreciation, a big shift to Bitcoin focused financial management. This has helped Metaplanet to be profitable for the first time since 2017, showing both financial discipline and forward thinking.
Diversified Revenue: Hotels and Bitcoin Business
While Bitcoin business has been the main driver, the hotel business has also contributed to the recovery. Through its subsidiary Wen Tokyo Co. the company operates the Royal Oak Hotel in Tokyo’s Gotanda district, a steady income stream alongside the Bitcoin business.
Going forward Metaplanet is formalizing the Bitcoin accumulation into a separate business unit. As part of its December 18 disclosure the company outlined plans to expand into Bitcoin accumulation and management using:
- Loans and equity financing
- Convertible bonds
- Private bond placements
On December 16 Metaplanet issued its 4th bond, 4.5 billion yen ($30 million) to buy more Bitcoin. And also announced 5 billion yen private placement to strengthen its financial position.
Metaplanet Becomes Asia’s 2nd Largest Bitcoin Holder
Metaplanet’s Bitcoin focus has made it Asia’s 2nd largest corporate Bitcoin holder after Boyaa Interactive. They now hold 1,142 Bitcoin worth 11.94 billion yen.
To strengthen its Bitcoin initiatives Metaplanet recently got a license to launch a Japanese version of Bitcoin Magazine, a crypto media outlet. This is to build revenue streams through Bitcoin related marketing activities and solidify its position in the digital asset space.
Meanwhile Metaplanet’s strategy is similar to global corporate players like MicroStrategy which recently added 15,350 Bitcoin worth 160 billion yen to their holdings. MicroStrategy now holds 439,000 BTC worth 4.6 trillion yen, showing increasing confidence in Bitcoin as a treasury asset.
Key Takeaways:
- Revenue Boost: Metaplanet’s Bitcoin put options generated $5.8 million in revenue.
- Diversified Streams: Hotel operations and BTC strategies drive growth.
- Bitcoin Holdings: Metaplanet now owns 1,142 BTC worth $119.4 million.
- Fundraising Success: Raised 4.5 billion yen via bonds for BTC purchases.
- Expansion Plans: Launching Bitcoin media projects and formalizing BTC management.
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