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Metaplanet Reports $605 Million Loss After Billions Spent on Bitcoin

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TLDR

  • Metaplanet posted a $605 million loss due to the decline in Bitcoin’s value.
  • The company spent $3.8 billion on Bitcoin, purchasing the asset at an average price of $107,000 per coin.
  • Metaplanet’s Bitcoin holdings are currently down by 37%, reflecting an unrealized loss of $1.4 billion.
  • Despite the losses, the company saw an 81% increase in operating profit from its options business.
  • Metaplanet continued purchasing Bitcoin even when the price exceeded $100,000, making its largest purchases in September and October.

Metaplanet, a Japanese firm that heavily invested in Bitcoin, has revealed a significant financial setback. The company announced a loss of ¥95 billion, or $605 million, for the past year. This decline follows the cryptocurrency’s steep drop in price from its all-time highs in October.

Metaplanet’s Losses Stem from Falling Bitcoin Value

The primary reason behind Metaplanet’s financial struggles lies in the falling value of its Bitcoin holdings. The firm’s 35,100 Bitcoin, which was worth $2.4 billion, has seen a dramatic decline in value. Since the company began accumulating Bitcoin 21 months ago, it has spent approximately $3.8 billion, acquiring the digital asset at an average price of $107,000 per Bitcoin.

At the current market value, Metaplanet’s Bitcoin holdings are down by about 37%, reflecting an unrealized loss of $1.4 billion. In the last quarter, ending December 31, the company’s Bitcoin stash lost ¥102 billion, or $664 million, in value. Despite these losses, Metaplanet’s stock price saw a minor increase to ¥326 on Monday.

Revenue from Premiums Amid the Losses

Metaplanet’s revenue model remains largely dependent on premiums from writing options. Over the course of the year, the company’s option premiums increased substantially, rising to ¥7.9 billion, or $51 million. This marks a sharp contrast to the previous ¥691 million, or $4.5 million, recorded in the prior year.

The firm has projected an 81% increase in operating profit, which it expects to come from its options business. While Metaplanet’s Bitcoin holdings have significantly decreased in value, this shift in focus toward its options business aims to provide some financial stability.

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Bitcoin Purchases Amid the Decline

Metaplanet has continued to invest in Bitcoin even as its value fluctuated. The company made some of its largest purchases when Bitcoin was trading above $100,000. In September, Metaplanet acquired $630 million worth of Bitcoin when the price was around $106,000, followed by another purchase of $615 million in October.

In total, Metaplanet has been purchasing Bitcoin through a combination of common stock issuance and preferred shares. The company’s strategy mirrors that of Michael Saylor’s firm, Strategy, which has also invested heavily in Bitcoin. However, unlike Strategy, Metaplanet has introduced products like MERCURY and MARS to help mitigate market risks.

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Crypto World

Fintech Company Secures Regulatory Approval in HK

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Fintech Company Secures Regulatory Approval in HK

The addition is the first crypto company to be licensed by the Securities and Futures Commission since June 2025, when the regulator approved Hong Kong BGE.

Hong Kong’s Securities and Futures Commission (SFC) has added another company to its list of formally licensed cryptocurrency trading platforms, according to a Friday announcement.

The SFC’s list of licensed virtual asset trading platforms includes Victory Fintech Company Limited as the latest of now 12 cryptocurrency and blockchain entities on the Hong Kong regulator’s website. The addition of Victory marked the first time since June 2025 that the SFC had approved a crypto trading platform in Hong Kong.

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Source: Hong Kong SFC

Although Hong Kong has been known for some time as a particularly strict jurisdiction in for crypto companies to operate in, authorities have been pursuing unlicensed virtual asset trading platforms as a criminal offense since June 2024. Many exchanges that had previously been operating in Hong Kong shut down, while others like OKX and Bybit withdrew their licensing applications. 

Related: Crypto funds log fourth week of outflows at $173M as BTC dips below $70K

In January, Hong Kong’s Secretary for Financial Services and the Treasury, Christopher Hui, said regulators, including those at the SFC, were planning to submit a draft ordinance for providers offering crypto advisory services sometime in 2026. While a dozen companies are now licensed under the SFC, Hong Kong’s Monetary Authority listed no licensed stablecoin issuers as of Monday.

HK allows licensed companies to engage in crypto margin financing, perpetual trading

The addition of Victory Fintech came just a few days after Hong Kong’s SFC said it will allow licensed brokers to provide virtual asset margin financing. The securities regulator’s guidance only allows Bitcoin (BTC) and Ether (ETH) to be eligible as collateral, initially.

The SFC also outlined a framework for trading platforms to offer perpetual contracts to professional investors.

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