Metaplanet’s Bitcoin Bet Backfires as Crypto Rout Triggers Heavy Losses

Metaplanet has become the latest Bitcoin-focused company to feel the strain of the sharp downturn in digital asset prices, after Bitcoin retreated significantly from the record highs reached in October.

The Japanese firm disclosed on Monday a full-year loss of ¥95 billion ($605 million) on revenue of ¥8.9 billion ($58 million), according to its earnings presentation. The weak performance was largely driven by a steep decline in the value of the company’s Bitcoin holdings, highlighting the growing risks facing corporate balance sheets tied closely to cryptocurrency prices.

Metaplanet currently holds 35,100 Bitcoin, valued at roughly $2.4 billion as of Monday. Since beginning its Bitcoin accumulation strategy around 21 months ago, the company has spent nearly $3.8 billion acquiring the digital asset at an average price of approximately $107,000 per coin. As a result, the firm is now sitting on an unrealized loss of about 37%, or roughly $1.4 billion. In the three months ending December 31 alone, Metaplanet said its Bitcoin stash suffered a valuation hit of ¥102 billion ($664 million).

Despite the losses, Metaplanet’s shares edged up to ¥326 on Monday, according to Yahoo Finance. However, the stock remains under heavy pressure, having fallen more than 62% over the past six months. The decline closely mirrors the performance of Strategy, the largest corporate holder of Bitcoin, whose shares have dropped around 65% over the same period.

Revenue Growth Fails to Offset Bitcoin Losses

Metaplanet generates most of its operating revenue from premiums earned through options-writing strategies. On a full-year basis, this revenue surged to ¥7.9 billion ($51 million), up sharply from ¥691 million ($4.5 million) a year earlier. The company forecast an 81% increase in full-year operating profit from this business line, underscoring efforts to diversify income streams beyond direct Bitcoin exposure.

Still, those gains were insufficient to counter the scale of losses stemming from Bitcoin’s price correction.

Late-Stage Buying Amplifies Downside Risk

Metaplanet began modeling its strategy on Michael Saylor’s Strategy months before President Donald Trump’s re-election spurred a wave of new Bitcoin treasury firms. However, despite this early start, the company made some of its largest Bitcoin purchases at elevated price levels.

In September, Metaplanet increased its Bitcoin holdings by 25% with a $630 million purchase when prices were near $106,000. The following month, it disclosed an additional $615 million purchase as Bitcoin traded around $108,000. The company has not announced any Bitcoin purchases so far this year.

To finance its acquisitions, Metaplanet has primarily issued common stock, while also adopting preferred shares as an alternative funding channel—mirroring Strategy’s approach. The company has launched two preferred share products, MERCURY and MARS, positioning them as tools to stabilize financing during periods of crypto market stress.

Describing MERCURY as the first product of its kind issued in Japan, Metaplanet said it was designed to help the company endure prolonged downturns in the digital asset market. Management emphasized that the structure supports a shift toward building “digital credit” and a more sustainable capital base that is less exposed to short-term market volatility.

Both preferred share offerings carry dividend obligations. Concerns over dividend sustainability have also surfaced around Strategy in recent months, prompting that firm to establish cash reserves to effectively pre-fund dividend payments on its own products.

Bitcoin Treasury Firms Struggle to Match Strategy

The broader landscape for Bitcoin treasury companies has become increasingly challenging as prices slide. According to data from Bitcoin Treasuries, corporate buyers added roughly $3.5 billion worth of Bitcoin in January, with Strategy accounting for about 93% of those purchases. The Virginia-based firm acquired 40,150 Bitcoin during the month, compared with just 3,080 Bitcoin bought by all other publicly traded firms combined.

In total, digital asset treasuries added nearly 43,230 Bitcoin in January, underscoring how dominant Strategy has become as other firms, including Metaplanet, struggle to maintain momentum amid falling prices and growing balance-sheet pressure.

Speculation around potential forced selling has also increased. On Myriad, a prediction market owned by Decrypt parent company Dastan, traders recently assigned a 22% probability that Strategy would sell some of its Bitcoin holdings this year to raise liquidity, with those odds having reached as high as 35% in recent months.

For Metaplanet, the latest results underscore both the appeal and the risks of adopting a Bitcoin-heavy treasury strategy—particularly when large-scale purchases are made near market peaks.