Metaplanet gains $28 million from Bitcoin holdings

Tokyo-based Metaplanet reported a $28 million increase in its Bitcoin (CRYPTO:BTC) holdings since initiating purchases, surpassing the company’s market capitalization at the start of the year, according to its Q3 financial report released on Monday.

Since late September, Metaplanet has more than doubled its Bitcoin acquisitions, increasing from 492.82 BTC to 1,018.17 BTC by mid-November.

This strategy has proven favorable amid a renewed cryptocurrency bull market, with Bitcoin’s value rising over 105% this year to $87,000.

In October alone, Metaplanet acquired over 156 BTC for approximately $10 million, bringing its cumulative investment in Bitcoin to $64 million.

Referred to as “Asia’s MicroStrategy,” Metaplanet is exploring Bitcoin options trading to generate premium income using cash or Bitcoin as collateral. The company aims to boost operational income and expand its cryptocurrency holdings.

Last month, Metaplanet adopted a metric similar to MicroStrategy’s “BTC Yield” as its official Key Performance Indicator (KPI) to assess how Bitcoin acquisitions impact shareholder returns.

“We intend to continue increasing our Bitcoin holdings through capital market activities and operational income as deemed appropriate,” Metaplanet stated in the report.

Despite the increase in Bitcoin holdings, Metaplanet reported a net loss of $2.1 million for the nine months ending September 30, 2024, an improvement from a loss of $2.7 million in the same period last year, according to the report.

However, revenue increased by 46.3% year-over-year to $1.7 million, driven by Metaplanet’s hotel business and digital asset ventures.

The firm secured over $26.7 million through stock issuances and bond offerings this year, as shown in the company’s financial reports.

At the time of reporting, the Bitcoin price was $87,480.37.