Metaplanet Secures $60.6M to Boost Bitcoin Holdings, Projects $5.8M Annual Revenue

Metaplanet Inc., a Tokyo listed investment firm, has raised 9.5 billion yen ($60.6 million) through two zero interest bonds to accelerate its Bitcoin buying strategy.

The first tranche of 4.5 billion yen ($28.7 million) was issued this week and the second 5 billion yen ($31.9 million) was issued yesterday. Both bonds mature June 16, 2025.

CEO Simon Gerovich said the funds will bring forward Bitcoin purchases planned for 2025 into this year. As of Dec 18 Metaplanet held 1,142.287 BTC worth around $110.3 million, Bitcoin is a key part of its treasury strategy.

Financial Turnaround: First Operating Profit in Seven Years

Metaplanet expects its first profit in 7 years with 890 million yen ($5.8 million) in revenue for the year ending Dec 31. This is up from 261 million yen last year. Operating profit is expected to be 270 million yen compared to a 468 million yen loss last year.

A big part of this financial turnaround is from Bitcoin related activities, particularly the sale of Bitcoin put options. These generated 520 million yen in income and is a key part of Metaplanet’s strategy to monetize cryptocurrency. The company earns a premium from these options regardless of whether they are exercised or not, which aligns with its overall strategy to accumulate Bitcoin.

Diversification Fuels Growth Beyond Bitcoin

While Bitcoin is the focus, Metaplanet’s subsidiary Wen Tokyo Co. has contributed to the financial turnaround. The company operates the Royal Oak Hotel in Tokyo’s Gotanda district and has added stability to its revenue streams. Along with its Bitcoin strategy the hotel operations has put Metaplanet on a path to sustainable growth.

Despite this Metaplanet’s stock fell 4.24% on the Tokyo Stock Exchange and closed at 3,610 yen on Friday. The shares are up 2,023% year to date and recently listed on the U.S. OTCQX market.

Key Takeaways:

  • Metaplanet raised $60.6M through bond issuances to advance Bitcoin purchases.
  • The firm projects $5.8M in annual revenue, marking a financial turnaround.
  • Diversified operations, including hotel management, complement its Bitcoin strategy.
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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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