Metaplanet's Bitcoin Strategy Faces Challenges as BTC Dips to Three-Month Low

Metaplanet, a leading player in Bitcoin adoption from Japan, is facing modest losses on its Bitcoin investments.

This downturn coincides with a significant price drop in Bitcoin, reaching its lowest point in over three months.

Measuring Metaplanet’s Losses as Bitcoin Falls Below $80,000

In the past week, Bitcoin has plummeted, recording a staggering weekly loss of 18.2%. Today, it reached an intra-day low under $80,000, a price not witnessed since November 2024.

As of the latest data, Bitcoin is quoted at $80,462, representing a 6.5% decline in just 24 hours. The overall cryptocurrency market has also experienced a downturn, with a total market capitalization drop of 7.7%.

For Metaplanet, which has an average acquisition cost of $81,458 per Bitcoin, these market fluctuations translate into financial challenges. Recent figures from BitcoinTreasuries indicate that Metaplanet is dealing with a 2.0% loss in its Bitcoin investments.

The company possesses a total of 2,235 BTC, valued at approximately $179.54 million, constituting a significant 20.9% of its total market capitalization.

Beyond its cryptocurrency investments, the firm's stock has also seen a notable decline.

BitMex Research reported, “Metaplanet (3350 JP) is down 54% since its peak.”

Despite this, BitMex pointed out that Metaplanet’s current stock price remains higher than the value of the Bitcoin it currently holds. According to Yahoo Finance, Metaplanet's shares dropped 17.4% in a single day, closing at ¥3,310 (around $22).

In light of these challenges, Metaplanet is maintaining a strong commitment to Bitcoin. On February 27, the company issued ¥2 billion (approximately $13.3 million) in zero-interest bonds specifically earmarked for Bitcoin acquisition. This marks the seventh issuance of bonds for this purpose, with redemption scheduled for August 26 at face value.

This strategy aligns with Metaplanet’s overarching goal for 2025—to accumulate 10,000 Bitcoins by year-end.

CEO Simon Gerovich emphasized, “The market recognizes Metaplanet as Tokyo's premier Bitcoin company, and we are leveraging this momentum to establish ourselves as a global leader.”

Metaplanet’s ambition extends beyond 2025, with plans to amass 21,000 Bitcoins by the end of 2026, termed the “21 Million Plan.” This proposal entails the issuance of 21 million shares through moving strike warrants, representing Asia’s largest-ever capital raise dedicated to Bitcoin, targeting ¥116.65 billion ($785 million).