The decline in digital assets continues to weigh on companies most exposed to the market. In Japan, Metaplanet gives a striking example with a quarterly loss of $725 million, linked to the decline in its bitcoin holdings. However, the group is not slowing down its strategy and is further strengthening its reserves, in a context where its economic model is evolving rapidly.
In brief
- Metaplanet reported a loss of $725 million in the first quarter, mainly related to the decline in the value of its Bitcoin holdings.
- Despite this loss, the Japanese company boosted its reserves with an additional 5,075 BTC, bringing its total to 40,177 BTC.
- The stock remains under pressure year-over-year, but Metaplanet's investor base has grown significantly to around 250,000 shareholders.
- The group is continuing its repositioning around Bitcoin, while preparing new financing and dividend products adapted to the Japanese market.
Bitcoin: a drop in value that weighs heavily on accounts
While Bitcoin finds more favorable macro signals in the markets, its recent decline continues to weigh on highly exposed companies. For Metaplanet, this drop was directly reflected in the first quarter accounts, with an announced loss of 114.5 billion yen, or approximately $725 million.
A year earlier, the deficit stood at 5 billion yen, or $31 million. The difference shows the extent of the deterioration in the Japanese group's results. It also highlights the high sensitivity of company balance sheets to variations in digital assets.
During the quarter ended March 31, the company added 5,075 units to its digital reserves. This increase represents 14.5% more compared to the previous quarter. With a recent price close to $79,300, his total portfolio reached 40,177 BTC, with an estimated value of $3.18 billion.
Since April 2024, the group has been accumulating this digital asset and is now among the largest private holders. However, the price correction, following last year's highs, reduced the book value of its positions.
A stock still fragile despite an expanded investor base
The stock closed Wednesday at 327.00 yen. Over one month, it gained 5.8%, driven by a more stable market and a bitcoin price close to $80,000. However, the stock remains down 45% over one year, which highlights the persistent pressure on valuation.
At the same time, Metaplanet indicates that its number of shareholders has increased significantly. The company claims about 250,000 investors, up from 63,600 the previous year. This increase shows broader market interest, even if the stock price has not yet returned to its past level.
The change in economic model also explains this evolution. The hotel business once formed the core of its income. Today, most of it comes from selling bitcoin-related options contracts. In the first quarter, this segment generated $15.8 million, compared to $4.8 million a year earlier.
This progression gives the group a source of revenue more aligned with its digital assets strategy. It also increases its exposure to market variations. Thus, the results remain dependent on the value of bitcoin and the demand for these financial products.
Metaplanet adjusts its financing and dividend plans
General manager Simon Gerovich presented a two-pronged line. The group wants to consolidate its position in Bitcoin with discipline, while developing services built on this basis. He declares in a post on X:
Our ambition revolves around two axes: continuing to consolidate our position in Bitcoin with discipline and patience, while developing the services and activities that rely on this foundation.
Simon Gerovich, CEO of Metaplanet.
This orientation confirms the central role of digital assets in its new financial identity. In this logic, Metaplanet is preparing a preferential action inspired by the STRC product used by Strategy. This type of tool aims to support the group's financing, as the company continues to structure its model around its reserves and its derivative activities.
Furthermore, Gerovich acknowledged that “ dividend products MARS and MERCURY were not yet launched “. Presented in November, they require more time than expected. The leader, however, indicated that “ Metaplanet remained committed to their marketing “.
The company also adapts their design to the uses of the Japanese market. Local listed companies generally distribute dividends once or twice a year. This difference explains the ongoing adjustments, especially compared to the STRC model, which pays monthly dividends.
In the short term, the focus will remain on the evolution of bitcoin, options revenues and the launch of announced products. If the market stabilizes, the company could reduce the volatility of its accounts, while continuing its financial repositioning. Despite some negative sentiments around the bitcoin rally, a continued rise could improve the value of its reserves, without erasing the risks associated with high exposure to the market.
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