Metaplanet Establishes Bitcoin Treasury Operations as O…

Japanese-listed company Metaplanet announced on December 18 that it will formally run Bitcoin Treasury Operations as a new business line.

This move, approved by the firm’s board of directors, is part of its broader strategy to integrate Bitcoin into its financial framework.

Details of the New Venture

The announcement, shared in a post on X, follows a series of shareholder approvals and strategic moves aimed at positioning the company as a leader in Bitcoin adoption and management. In it, Metaplanet stated that its new business line will focus on purchasing, holding, and managing the crypto asset through various financial instruments, including loans, equity issuances, and convertible bonds.

The document also reveals Bitcoin purchases and accumulation will be conducted with BTC Yield as the primary performance metric.

Metaplanet will also continue generating premium income from Bitcoin put option sales, which capitalize on the asset’s volatility to drive revenue. Furthermore, its exclusive license for Bitcoin Magazine Japan will be used to create new revenue streams through BTC-related marketing activities and educational initiatives.

By combining these efforts, the investment firm is seeking to solidify its role as Japan’s leading Bitcoin treasury company and a pioneer in the country’s crypto ecosystem. It emphasized that the new business model will complement its existing hotel operations, with both areas serving as core pillars of the firm’s growth strategy.

Financial Achievements

The Tokyo-based company is on track to achieve its first consolidated operating profit in seven years, just months after adding BTC to its balance sheet. In a separate disclosure on December 18, it projected revenue of 890 million yen ($5.8 million) for the fiscal year ending December 31, a significant jump from the 261 million yen reported the previous year.

A major portion of this revenue, 520 million yen ($3.4 million), came from selling Bitcoin put options. Additionally, the investment firm reported unrealized gains of approximately 7.446 billion yen ($48.6 million) on its BTC holdings.

Since pivoting to the number one cryptocurrency as a treasury asset in April 2024 to hedge against the weakening yen, Metaplanet has actively pursued several capital-raising efforts to support its acquisition strategy.

These include securing $66 million through its 11th stock acquisition rights exercise in October, raising $11.3 million via bond issuance in early November, and obtaining $62 million through its 12th stock acquisition rights later that month.

Most recently, on December 16, it issued a fourth bond worth nearly 4.5 billion yen ($30 million) and announced plans for an additional 5 billion yen in private placement bonds. As of today, Metaplanet holds 1,018 BTC, valued at approximately $118 million, according to BitcoinTreasuries.