Metaplanet, a major corporate adopter of Bitcoin in Japan, has started to experience some losses in its investments.
This is because the price of cryptocurrencies has fallen to the lowest level in 3 months.
Metaplanet, Bitcoin below $80,000... Losses begin
Over the past week, Bitcoin has experienced a sharp decline, with a weekly loss of 18.2%. In fact, today, the price has fallen below $80,000, recording such a price level for the first time since November 2024.
At the time of reporting, BTC was trading at $80,462, down 6.5% over the past 24 hours. The broader cryptocurrency market also declined, with a 7.7% decrease in total market capitalization.
For Metaplanet, with an average BTC cost of $81,458, such volatility means trouble. According to the latest data on Bitcoin treasuries, Metaplanet is experiencing a 2.0% loss on its Bitcoin investments.
The company currently holds 2,235 BTC, worth approximately $179.54 million, which accounts for 20.9% of its total market capitalization.
The financial difficulties extend beyond just cryptocurrency holdings. Metaplanet's stock has also taken a significant hit.
"Metaplanet (3350 JP) is down 54% from its peak." - BitMEX Research mentioned.
However, BitMEX emphasized that Metaplanet's stock price is still much higher than the value of the BTC it holds. Meanwhile, Yahoo Finance reports that Metaplanet's stock closed down 17.4% at 3,310 yen (around $22) today.
Despite the decline, Metaplanet remains committed to Bitcoin. On February 27, the company issued a 20 billion yen (around $133 million) interest-free bond to purchase BTC, its seventh bond issuance for the same purpose. This bond is scheduled to be redeemed at par value on August 26.
This move aligns with Metaplanet's 2025 roadmap. The company aims to accumulate 10,000 BTC by the end of the year.
"The market recognizes Metaplanet as a leading Bitcoin company in Tokyo, and we are leveraging this momentum to establish our position as a global leader. Our vision is to spearhead a Bitcoin renaissance in Japan and emerge as one of the world's largest corporate Bitcoin holders. This plan is our commitment to that future." - Metaplanet CEO Simon Gerovich said.
Metaplanet's ambitious strategy extends beyond 2025, with a goal to accumulate 21,000 BTC by the end of 2026. The company refers to this as the "21 Million Plan".
This plan includes the issuance of 21 million shares through a moving strike warrant. This would be the largest-scale stock capital raising for Bitcoin in Asia, with a fundraising target of 116.65 billion yen (around $785 million).
