Metaplanet Establishes Bitcoin Treasury Operations as Official Line of Business

Japanese company Metaplanet announced on December 18 that it will officially run Bitcoin Treasury Operations as a new line of business.

The move, approved by the company’s board of directors, is part of its broader strategy to integrate Bitcoin into its financial framework.

Details of the new company

The announcement, shared in a post on X, follows a series of shareholder approvals and strategic moves aimed at positioning the company as a leader in Bitcoin adoption and management. In it, Metaplanet stated that its new line of business will focus on buying, holding and managing crypto assets through various financial instruments, including loans, equity issuances and convertible bonds.

The document also reveals that Bitcoin purchases and accumulation will be conducted with BTC Yield as the primary performance metric.

Metaplanet will also continue to generate premium income from sales of Bitcoin put options, which take advantage of the volatility of the asset to generate income. In addition, its exclusive license to Bitcoin Magazine Japan will be used to create new revenue streams through BTC-related marketing activities and educational initiatives.

By combining these efforts, the investment firm seeks to consolidate its role as Japan’s leading Bitcoin treasury company and a pioneer in the country’s crypto ecosystem. He emphasized that the new business model will complement its existing hotel operations, with both areas as fundamental pillars of the firm’s growth strategy.

Financial achievements

The Tokyo-based company is on track to post its first consolidated operating profit in seven years, just months after adding BTC to its balance sheet. In a separate disclosure on Dec. 18, it projected revenue of 890 million yen ($5.8 million) for the fiscal year ending Dec. 31, a significant jump from the 261 million yen reported last year. previous year

A significant portion of this revenue, ¥520 million ($3.4 million), comes from the sale of Bitcoin put options. In addition, the investment firm recorded unrealized gains of approximately ¥7.446 billion ($48.6 million) on its BTC holdings.

Since moving to the number one cryptocurrency as a treasury asset in April 2024 to hedge against the weakening yen, Metaplanet has been actively pursuing various capital raising efforts to support its acquisition strategy.

These include securing $66 million through its 11th stock rights exercise in October, raising $11.3 million through a bond issue in early November, and raising $62 million through the his 12 stock options later that month.

Most recently, on Dec. 16, it issued a fourth bond worth nearly 4.5 billion yen ($30 million) and announced plans for an additional 5 billion yen in private placement bonds. As of today, Metaplanet has 1,018 BTC, valued at approximately $118 million, according to BitcoinTreasures.

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