Metaplanet races to catch up with Strategy, plans to hold 10,000 BTC by year-end
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Metaplanet races to catch up with Strategy, plans to hold 10,000 BTC by year-end
Metaplanet aims to increase its reserves to 21,000 BTC by the end of 2026.
Navigating Web3 tides with focused insightsSource: cryptoslate
Translation: Blockchain Knight
On February 9, Strategy acquired another 7,633 BTC, increasing its unrealized profit to over $17 billion.
Meanwhile, Metaplanet reported that 85% of its 2024 net income was attributable to its BTC holdings, with nearly $36 million in unrealized profits.
The company stated, it plans to increase its BTC reserves to 10,000 BTC by the end of 2025 and to 25,000 BTC by the end of 2026.
Strategy Strengthens Its BTC Reserves
On February 10, Strategy announced an additional purchase of 7,633 BTC for its treasury. At press time, its treasury balance reached 478,740 BTC, achieving a year-to-date BTC return rate of 4.1%.
According to BTC treasury data, Strategy now holds nearly 12 times more BTC than Marathon Digital, the second-largest publicly traded BTC holder among listed companies.
Given the company's average cost per BTC of $62,691, and with BTC priced at $97,405.80 at press time, its unrealized profit exceeds $17 billion.
BTC-Driven Growth
As of February 10, Metaplanet’s BTC reserves stood at 1,762 BTC, acquired through internally generated capital and structured financial instruments.
In April 2024, Metaplanet officially transitioned from a hotel-focused business to a BTC financial company. Last year, the company raised over $150 million to acquire BTC.
By year-end, its BTC holdings were 14 times the market value it had in April 2024, making it Asia's largest public BTC holder and one of the top 15 globally.
Metaplanet is Japan's only BTC proxy investment, a key factor driving significant growth in its metrics.
Metaplanet currently operates two revenue-generating businesses, adding BTC income generation to its hotel operations. The BTC income generation business allocates approximately 5% of raised funds to monetize BTC volatility through options strategies.
In addition, the company plans to transform its Tokyo hotel into a BTC-themed venue to bridge the two industries.
Since adopting BTC, Metaplanet has seen its shareholder base grow by 500%, its market capitalization increase over 100-fold, and its stock trading volume in 2024 rise 430 times compared to 2023.
Profits
Metaplanet reported net income of 6.397 billion JPY ($42.1 million) for the fiscal year, marking the first operating profit since 2017.
Additionally, Metaplanet's total assets surged to 30.325 billion JPY, a 1,720% increase from the 2023 fiscal year. The company emphasized that future financing will be used for BTC accumulation, not operational expenses.
The "BTC yield" also grew by nearly 310% last year, a performance metric representing the quarterly change in the ratio between Metaplanet’s BTC holdings and its fully diluted shares outstanding.
The company aims to increase its reserves to 21,000 BTC by the end of 2026. On February 10, Metaplanet announced the issuance of over $26 million in bonds to achieve this goal, with proceeds dedicated exclusively to purchasing more BTC.
Furthermore, the Japanese company intends to increase its reserves to 10,000 BTC by the end of 2025.
The company is also committed to maximizing BTC value per share, moving away from fiat-based financial strategies while maintaining sustainable operating profits as it expands its BTC holdings.
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