Metaplanet’s Bitcoin Bet Leads to $1.35 Billion Paper Loss

Tokyo-based Metaplanet released its fiscal year 2025 results, reporting a 738% year-over-year increase in revenue. 

Despite the revenue surge, Bitcoin’s drawdown weighed heavily on the firm, as a non-cash valuation loss of 102.2 billion yen ($667.52 million) pushed the company into a net loss for the year.

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Metaplanet’s FY2025 earnings report revealed revenue climbed to 8.9 billion yen ($58.12 million), up from 1.06 billion yen ($6.92 million) a year earlier. The company’s Bitcoin income business generated roughly 95% of total revenue.

Operating profit rose sharply to 6.28 billion yen ($41.01 million), marking a 1,694.5% increase year over year. Its shareholder base expanded significantly, growing from 47,200 at the end of 2024 to around 216,500 by the close of 2025. 

Total assets also surged, rising from 30.3 billion yen ($197.89 million) to 505.3 billion yen ($3.30 billion) over the same period.

Despite the strong operational performance, the company posted a net loss of 95 billion yen ($620.17 million), after recording net income of 4.44 billion yen ($29.00 million) in 2024. The loss was primarily driven by valuation declines on its Bitcoin holdings.

Bitcoin Valuation Loss Impact on Metaplanet. Source: Metaplanet

Still, Metaplanet emphasized the strength of its balance sheet. The company said its liabilities and preferred stock would remain fully covered even in the event of an 86% drop in Bitcoin’s price, supported by an equity ratio of 90.7%.

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The company also outlined its outlook for this year. Metaplanet expects revenue to reach 16 billion yen ($104.49 million) in FY2026, representing a 79.7% increase year over year. Operating profit is projected to rise to 11.4 billion yen ($74.45 million), up 81.3% from the previous year.

Japan’s Largest Corporate Bitcoin Holder Faces $1.35 Billion Unrealized Loss

According to the latest data, Metaplanet holds 35,102 BTC, a major increase from just 1,762 BTC at the end of 2024. The accumulation strategy has positioned the company as the largest corporate Bitcoin holder in Japan and the fourth-largest publicly listed corporate holder globally.

However, the rapid expansion of its Bitcoin treasury now comes with significant pressure. Metaplanet’s average acquisition cost stands at $107,716 per BTC, while Bitcoin is currently trading at $68,821.

Metaplanet Bitcoin Holdings. Source: BitcoinTreasuries.net

Across its entire 35,102 BTC position, this translates into approximately $1.35 billion in unrealized losses. While these losses remain on paper and could reverse if Bitcoin recovers, they highlight the inherent volatility risk tied to corporate treasury strategies heavily concentrated in digital assets.

Metaplanet is not alone in facing valuation pressure. Bitcoin’s broader market drawdown has also pushed MicroStrategy’s holdings below its average acquisition price, leaving the US-based firm with unrealized losses exceeding $5.33 billion as of the latest data.

Metaplanet Stock Performance. Source: Google Finance

The impact extends beyond balance sheets. Metaplanet’s share price is down 28.63% year-to-date, reflecting how closely the company’s equity performance is now tied to Bitcoin’s price movements.

Source: https://beincrypto.com/metaplanet-2025-results-bitcoin-loss/