Metaplanet's Major Shift
The Japanese investment company #Metaplanet has announced the addition of Bitcoin Treasury Operations as one of its core business areas. This move aims to capitalize on the growth momentum of $BTC , the world's largest asset by market capitalization, as it recently reached a new all-time high of over $108,000.
Metaplanet asserts its pioneering role in the Bitcoin ecosystem in Japan, focusing on buying, holding, and managing Bitcoin through financial instruments such as convertible bonds and stock issuance. At the same time, the company is also implementing a strategy to sell Bitcoin put options to create additional revenue from price volatility.
Negative Market Reaction
Despite its ambitious plans, Metaplanet's stock (code 3350) on the Tokyo Stock Exchange fell by 13.73%, closing at $22.90 (3,520 JPY). This reflects investors' concerns over the strategy focused on Bitcoin, a highly volatile asset.
Achievements and Financial Forecast
As of the end of December, Metaplanet holds 1,142.287 BTC, valued at approximately $119 million, making it one of the largest Bitcoin-holding companies in Japan. The financial forecast for 2024 indicates revenues of $5.8 million (¥890 million), a 240% increase from the previous year, and an expected operating profit of $1.8 million (¥270 million), marking a recovery since the fiscal year 2017.
Capital Raising Strategy
Since October, Metaplanet has raised over $140 million through stock and bond offerings, including a $30 million (¥4.5 billion) zero-interest bond to support Bitcoin accumulation. The company also leverages its exclusive publishing license for Bitcoin Magazine Japan to generate additional revenue from marketing and education.
Analysis
Metaplanet is making a big bet on Bitcoin not only as a financial asset but also as a revenue growth driver. However, this strategy also comes with high risks, especially as Bitcoin's price fluctuates significantly. In the context of a depreciating Japanese yen, this direction could either become a foundation for Metaplanet's financial recovery or pose a significant challenge if Bitcoin enters a deep correction phase.
