Japanese investment firm Metaplanet has forecasted its first consolidated operating profit in seven years, thanks to its pivot to Bitcoin. The Tokyo-based company revealed on December 18 that it expects to generate ¥890 million ($5.8 million) in revenue for the fiscal year ending December 31, a significant jump from ¥261 million the previous year. Operating profits are projected at ¥270 million, a remarkable turnaround from a ¥468 million loss in the previous fiscal year.
A major part of this success stems from Metaplanet’s Bitcoin put option strategy, which brought in ¥520 million in income. The firm attributes this performance to a surge in Bitcoin’s value, further amplified by its decision to adopt Bitcoin as a treasury asset in April to hedge against currency depreciation.
The company also benefited from strong performance in its hospitality business, which includes operating the Royal Oak Hotel in Tokyo’s Gotanda district through its subsidiary, Wen Tokyo Co.
Bitcoin as a New Core Business Line
Beyond using Bitcoin for treasury management, Metaplanet is taking steps to integrate Bitcoin into its core operations. The company recently announced the establishment of a new business line focused on “Bitcoin accumulation and management.” This initiative involves leveraging financial instruments such as loans, equity, and convertible bonds to expand its Bitcoin holdings while continuing to generate income through put option sales.
For each put option contract sold, Metaplanet earns a premium, regardless of whether the option is exercised. In cases where the option is exercised, the company gains an opportunity to acquire Bitcoin at a pre-determined strike price, aligning with its strategic goals.
The firm has also diversified its Bitcoin-related activities by obtaining a license to operate a Japanese version of Bitcoin Magazine, signaling plans to tap into Bitcoin-related marketing and media revenue streams.
Metaplanet Eyes Top Spot in Asia
Metaplanet now holds 1,142 Bitcoin, valued at approximately $119.4 million, making it Asia’s second-largest corporate Bitcoin holder after Boyaa Interactive. The company also issued its fourth bond worth ¥4.5 billion on December 16, further supporting its Bitcoin strategy.
With Bitcoin at the core of its turnaround, Metaplanet is achieving financial stability and carving a niche in the rapidly evolving crypto economy.
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