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Metaplanet forecasts $5.8M revenue with Bitcoin boost

Metaplanet forecasts $5.8M revenue with Bitcoin boost

Grafa2024/12/18 09:10
By: Isaac Francis
BTC-0.41%

Metaplanet, a Japanese investment firm, expects to report its first operating profit in seven years, with Bitcoin (CRYPTO:BTC) playing a crucial role in its financial recovery.

On December 18, the firm disclosed that it expects to generate 890 million Japanese yen ($5.8 million) in revenue for the fiscal year ending December 31.

This marks a significant increase from the previous fiscal year, which saw revenue of just 261 million yen.

Additionally, Metaplanet anticipates an operating profit of 270 million yen, compared to a loss of 468 million yen last year.

A substantial portion of Metaplanet's revenue comes from selling Bitcoin put options, which earned the firm 520 million yen. The rise in Bitcoin’s value this year has led many companies to adopt similar strategies, resulting in an increase in their stock prices and overall valuation.

"Combined with the strong performance of the hotel business, the company is on track to record consolidated operating profit for the first time since FY2017," the firm said in a statement.

Metaplanet, which pivoted to Bitcoin as a treasury asset in April, now holds 1,142 Bitcoin, valued at approximately $119.4 million.

It plans to further strengthen its Bitcoin strategy by establishing a formal business line dedicated to Bitcoin accumulation and management.

The firm aims to utilise loans, equity, convertible bonds, and other instruments to continue acquiring Bitcoin.

Metaplanet also intends to generate revenue through Bitcoin-related marketing, including its recent acquisition of a license to operate the Japanese version of Bitcoin Magazine.

As part of its strategy, Metaplanet recently issued bonds worth 4.5 billion yen ($30 million) to fund further Bitcoin purchases.

At the time of reporting, the price of Bitcoin (BTC) was $104,147.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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