Just months after adding Bitcoin to the company's balance sheet for the first time, Tokyo Stock Exchange-listed Japanese company Metaplanet announced on Wednesday that it expected to post its first consolidated operating profit since 2017 and expressed hope that it would not only Buy Bitcoin as part of a financial strategy.
Metaplanet expects revenue to reach 890 million yen (approximately $5.8 million) for the fiscal year ending December 31, 2024, which represents a significant increase from 261 million yen in the previous fiscal year. At the same time, the company forecast its operating profit would reach 270 million yen, marking a profit turnaround from a loss of 468 million yen last year.
Metaplanet stated that most of its revenue comes from selling Bitcoin options, which has brought in 520 million yen in revenue.
This year, due to the surge in Bitcoin (BTC) prices, there has been a significant increase in companies adopting Bitcoin strategies, which in many cases has driven up their corporate value and stock prices. Metaplanet stated in a declaration:
‘With the strong performance of the hotel business, despite the company’s sales, general, and administrative expenses being expected to be around 385 million yen, the company still expects to achieve its first consolidated operating profit since the fiscal year 2017.’
*Metaplanet Projects First Fiscal Year Operating Profit Since 2017* pic.twitter.com/oYNKOtNatR
— Metaplanet Inc. (@Metaplanet_JP) December 18, 2024
Metaplanet made a strategic shift in its financial management strategy in April this year, adopting Bitcoin as a strategic reserve asset to hedge against Japan's debt burden and the resulting fluctuations of the yen. Metaplanet also stated today that the company aims to go beyond merely accumulating Bitcoin and further expand its use in financial management strategies.
In another independent investor disclosure announcement, Metaplanet stated that it will establish 'Bitcoin Accumulation and Management' as a formal business line, using loans, stocks, convertible bonds, and other financial instruments to purchase and hold Bitcoin. The company will also continue to leverage the sale of put options as a primary source of revenue in the future.
Metaplanet also stated that it plans to establish a revenue source from Bitcoin-related marketing activities through the recently acquired Japanese version of the Bitcoin media 'Bitcoin Magazine'.
Metaplanet is the second largest corporate holder of Bitcoin in Asia, following Bia Interactive, currently holding 1,142 Bitcoins, valued at approximately 119.4 million USD.
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