Metaplanet Faces Bitcoin Losses and Stock Dip as BTC Crashes

Metaplanet, the Japanese company that has established itself as a prominent corporate adopter of Bitcoin, is starting to experience modest losses on its investments. 

This comes as the cryptocurrency’s price has fallen to its lowest levels in over three months.

Over the past week, Bitcoin has been undergoing a sharp downturn, with weekly losses extending to 18.2%. In fact, today, its price dropped to intra-day lows below $80,000, marking price levels last seen in November 2024.

At press time, Bitcoin was trading at $80,462 after a 6.5% decrease in the past 24 hours. The broader crypto market was also down, with the total market capitalization depreciating by 7.7%.

For Metaplanet, which has an average cost of $81,458 per Bitcoin, these fluctuations spell trouble. According to the latest data from BitcoinTreasuries, Metaplanet is grappling with a 2.0% loss on its Bitcoin investments.

The company currently holds 2,235 BTC, valued at $179.54 million. This represents a substantial 20.9% of the firm’s total market capitalization.

The financial challenges extend beyond its cryptocurrency holdings. Metaplanet’s stock has also taken a notable hit. 

“Metaplanet (3350 JP) is now down 54% since the peak,” BitMex Research noted.

However, BitMex highlighted that Metaplanet’s stock price is still significantly higher than the value of the Bitcoin it holds. Meanwhile, according to Yahoo Finance, Metaplanet shares declined 17.4% today, closing at ¥3,310 (approximately $22).

Despite the dip, Metaplanet has remained steadfast in its commitment to Bitcoin. On February 27, the company issued ¥2 billion (approximately $13.3 million) in zero-interest bonds to purchase Bitcoin. This marked its seventh bond issuance for the same purpose. These bonds are scheduled for redemption on August 26, at face value. 

The move is in line with Metaplanet’s 2025 roadmap. The company aims to accumulate 10,000 Bitcoins by the end of the year.

“The market has recognized Metaplanet as Tokyo’s preeminent Bitcoin company, and we are seizing this momentum to solidify our position as a global leader. Our vision is to lead the Bitcoin renaissance in Japan and emerge as one of the largest corporate Bitcoin holders globally. This plan is our commitment to that future,” Metaplanet’s CEO Simon Gerovich said.

Metaplanet’s ambitious strategy extends beyond 2025, with a target of accumulating 21,000 Bitcoins by the end of 2026. The company calls it the “21 Million Plan.”

This initiative involves the issuance of 21 million shares through moving strike warrants. It represents Asia’s largest-ever equity capital raise for Bitcoin, with a funding target of ¥116.65 billion ($785 million).