2024

Bitcoin

April

Standard

Bitcoin stacking firm Metaplanet expects to record its first consolidated operating profit in seven years just months after adding Bitcoin its balance sheet for the first time.
The Japanese investment firm on Dec. 18 <a data-ct-non-breakable="null" href="https://metaplanet.jp/wp-content/uploads/2024/12/Notice-Regarding-Consolidated-Earnings-Forecast-for-the-Fiscal-Year-Ending-December-31-2024_20241218.pdf" rel="null" target="null" text="null" title="null">said</a> it expects to generate 890 million Japanese yen ($5.8 million) in revenue for the fiscal year ending Dec. 31, compared to just 261 million Japanese yen in the previous fiscal year. It tipped its operating profit to hit 270 million Japanese yen, up from a loss of 468 million Japanese yen.
Metaplanet says much of its revenue came from selling Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="null">BTC</a>) put <a data-ct-non-breakable="null" href="https://cointelegraph.com/explained/bitcoin-options-expiry-explained-what-it-means-for-traders#:~:text=If%20you%20hold%20Bitcoin%20but,profit%20from%20the%20buyer's%20premium." rel="null" target="null" text="null" title="null">options</a>, which generated 520 million Japanese yen in income.
There’s been a marked increase in companies adopting a Bitcoin strategy this year as the price of BTC has soared, leading, in many cases, to a boost in their value and stock prices.
“Combined with the strong performance of the hotel business [...] the company is on track to record consolidated operating profit for the first time since FY2017,” it said in a statement.&nbsp;
<figure>
 <img alt="Metaplanet tips first operating profit in 7 years, boosted by Bitcoin" src="https://s3.cointelegraph.com/uploads/2024-12/0193d82e-84c4-7cf5-807a-d5b9693108d4" title="">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/Metaplanet_JP/status/1869172010506727560" rel="null" target="null" text="null" title="null">Metaplanet</a>
 </figcaption>
</figure>
Metaplanet is a publicly traded Tokyo-based investment firm that <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/japanese-investment-firm-boost-stock-adopt-bitcoi" rel="null" target="null" text="null" title="null">made a major pivot to Bitcoin</a> in April, adopting it as a treasury asset to hedge against currency depreciation.&nbsp;
It also owns and operates the Royal Oak Hotel in Tokyo’s Gotanda district through its consolidated subsidiary, Wen Tokyo Co.&nbsp;
<h2 id="bitcoin-treasury-operations-added-as-a-new-business-line">Bitcoin treasury operations added as a new business line&nbsp;</h2>
Metaplanet <a data-ct-non-breakable="null" href="https://metaplanet.jp/wp-content/uploads/2024/12/Addition-of-Bitcoin-Treasury-Operations-as-a-New-Business-Line_20241218.pdf" rel="null" target="null" text="null" title="null">says</a> it wants to move beyond simply <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/genius-group-stocks-up-treasury-with-110-bitcoin-for-10-million" rel="null" target="null" text="null" title="null">accumulating Bitcoin</a> as part of its treasury management strategy.&nbsp;
In a separate investor disclosure on Dec. 18, Metaplanet said it would establish “Bitcoin accumulation and management” as a formal business line, which will see it employ loans, equity, convertible bonds and other financial instruments to purchase and hold Bitcoin.
It said it will continue utilizing put option sales as a key <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/jiva-technologies-bitcoin-into-treasury-strategy" rel="null" target="null" text="null" title="null">revenue driver</a>.&nbsp;
<blockquote class="twitter-tweet">
 Thank you, <a href="https://twitter.com/saylor?ref_src=twsrc%5Etfw">@saylor</a>, for recognizing <a href="https://twitter.com/Metaplanet_JP?ref_src=twsrc%5Etfw">@Metaplanet_JP</a> as one of the Bitcoin Standard companies! Your leadership continues to inspire us as we build toward a brighter future on the foundation of Bitcoin. <a href="https://t.co/dIUe2sbzD0">pic.twitter.com/dIUe2sbzD0</a>— Simon Gerovich (@gerovich) <a href="https://twitter.com/gerovich/status/1864092867540729908?ref_src=twsrc%5Etfw">December 3, 2024</a>
</blockquote>
Put options are contractual agreements giving the owner who buys them the ability to sell an underlying asset at a pre-agreed value called a “strike price” to the issuer, in this case, Metaplanet. It’s a way for investors to lock in a minimum selling price for an asset they own to avoid further losses.
Metaplanet, in turn, earns a premium for each put option contract it sells, whether or not the option is exercised. If the option is exercised, it will allow it to buy Bitcoin in line with its strategy.&nbsp;
<figure>
 <img alt="Metaplanet tips first operating profit in 7 years, boosted by Bitcoin" src="https://s3.cointelegraph.com/uploads/2024-12/0193d82f-a8e6-7386-8d59-ad79599520b3" title="">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/dotkrueger/status/1869183235051467157" rel="null" target="null" text="null" title="null">Fred Krueger</a>
 </figcaption>
</figure>
Metaplanet also aims to establish revenue streams from Bitcoin-related marketing activities through its recently acquired license to operate a Japanese version of the news outlet Bitcoin Magazine.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ohio-house-rep-introduces-bitcoin-reserve-bill" rel="null" target="null" text="null" title="null">Ohio lawmaker introduces Bitcoin reserve bill allowing state to buy BTC</a>
Metaplanet is Asia’s second-largest <a data-ct-non-breakable="null" href="https://cointelegraph.com/explained/bitcoin-on-corporate-balance-sheets-whats-the-risk-and-reward" rel="null" target="null" text="null" title="null">corporate Bitcoin holder</a> after Boyaa Interactive and now holds 1,142 Bitcoin worth about $119.4 million.&nbsp;
On Dec. 16, Metaplanet <a data-ct-non-breakable="null" href="https://contents.xj-storage.jp/xcontents/33500/3ac88ae5/6bb8/403c/80c7/c2f8ecb81268/140120241213538773.pdf" rel="null" target="null" text="null" title="null">announced</a> its fourth bond issuance worth just under 4.5 billion Japanese yen ($30 million) with the aim of accumulating more Bitcoin, along with a plan to issue another 5 billion Japanese yen private placement ordinary bonds.&nbsp;
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/bitcoin-demand-shocks-ripple-stablecoin-brad-garlinghouse-riot-platforms-hodlers-digest/" rel="null" target="null" text="null" title="null">Bitcoin ‘demand shocks’ looming, Ripple stablecoin, and more: Hodler’s Digest, Dec. 8 – 14</a>
Bitcoin stacking firm Metaplanet expects to record its first consolidated operating profit in seven years just months after adding Bitcoin its balance sheet for the first time.
The Japanese investment firm on Dec. 18 <a data-ct-non-breakable="null" href="https://metaplanet.jp/wp-content/uploads/2024/12/Notice-Regarding-Consolidated-Earnings-Forecast-for-the-Fiscal-Year-Ending-December-31-2024_20241218.pdf" rel="null" target="null" text="null" title="null">said</a> it expects to generate 890 million Japanese yen ($5.8 million) in revenue for the fiscal year ending Dec. 31, compared to just 261 million Japanese yen in the previous fiscal year. It tipped its operating profit to hit 270 million Japanese yen, up from 468 million Japanese yen.
Metaplanet says much of its revenue came from selling Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="null">BTC</a>) put <a data-ct-non-breakable="null" href="https://cointelegraph.com/explained/bitcoin-options-expiry-explained-what-it-means-for-traders#:~:text=If%20you%20hold%20Bitcoin%20but,profit%20from%20the%20buyer's%20premium." rel="null" target="null" text="null" title="null">options</a>, which generated 520 million Japanese yen in income.
There’s been a marked increase in companies adopting a Bitcoin strategy this year as the price of BTC has soared, leading, in many cases, to a boost in their value and stock prices.
“Combined with the strong performance of the hotel business [...] the company is on track to record consolidated operating profit for the first time since FY2017,” it said in a statement.&nbsp;
<figure>
 <img alt="Metaplanet tips first operating profit in 7 years, boosted by Bitcoin" src="https://s3.cointelegraph.com/uploads/2024-12/0193d82e-84c4-7cf5-807a-d5b9693108d4" title="">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/Metaplanet_JP/status/1869172010506727560" rel="null" target="null" text="null" title="null">Metaplanet</a>
 </figcaption>
</figure>
Metaplanet is a publicly traded Tokyo-based investment firm that <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/japanese-investment-firm-boost-stock-adopt-bitcoi" rel="null" target="null" text="null" title="null">made a major pivot to Bitcoin</a> in April, adopting it as a treasury asset to hedge against currency depreciation.&nbsp;
It also owns and operates the Royal Oak Hotel in Tokyo’s Gotanda district through its consolidated subsidiary, Wen Tokyo Co.&nbsp;
<h2 id="bitcoin-treasury-operations-added-as-a-new-business-line">Bitcoin treasury operations added as a new business line&nbsp;</h2>
Metaplanet wants to move beyond <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/genius-group-stocks-up-treasury-with-110-bitcoin-for-10-million" rel="null" target="null" text="null" title="https://cointelegraph.com/news/genius-group-stocks-up-treasury-with-110-bitcoin-for-10-million">accumulating Bitcoin</a> as part of its treasury management strategy.&nbsp;
In a separate investor disclosure on Dec. 18, Metaplanet said it would establish “Bitcoin accumulation and management” as a formal business line, which will see it employ loans, equity, convertible bonds and other financial instruments to purchase and hold Bitcoin.
It said it will continue utilizing put option sales as a key <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/jiva-technologies-bitcoin-into-treasury-strategy" rel="null" target="null" text="null" title="null">revenue driver</a>.&nbsp;
<blockquote class="twitter-tweet">
 Thank you, <a href="https://twitter.com/saylor?ref_src=twsrc%5Etfw">@saylor</a>, for recognizing <a href="https://twitter.com/Metaplanet_JP?ref_src=twsrc%5Etfw">@Metaplanet_JP</a> as one of the Bitcoin Standard companies! Your leadership continues to inspire us as we build toward a brighter future on the foundation of Bitcoin. <a href="https://t.co/dIUe2sbzD0">pic.twitter.com/dIUe2sbzD0</a>— Simon Gerovich (@gerovich) <a href="https://twitter.com/gerovich/status/1864092867540729908?ref_src=twsrc%5Etfw">December 3, 2024</a>
</blockquote>
Put options are contractual agreements giving the owner who buys them the ability to sell an underlying asset at a pre-agreed value called a “strike price” to the issuer, in this case, Metaplanet. It’s a way for investors to lock in a minimum selling price for an asset they own to avoid further losses.
Metaplanet, in turn, earns a premium for each put option contract it sells, whether or not the option is exercised. If the option is exercised, it will allow it to buy Bitcoin in line with its strategy.&nbsp;
<figure>
 <img alt="Metaplanet tips first operating profit in 7 years, boosted by Bitcoin" src="https://s3.cointelegraph.com/uploads/2024-12/0193d82f-a8e6-7386-8d59-ad79599520b3" title="">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/dotkrueger/status/1869183235051467157" rel="null" target="null" text="null" title="null">Fred Krueger</a>
 </figcaption>
</figure>
Metaplanet also aims to establish revenue streams from Bitcoin-related marketing activities through its recently acquired license to operate a Japanese version of the news outlet Bitcoin Magazine.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ohio-house-rep-introduces-bitcoin-reserve-bill" rel="null" target="null" text="null" title="null">Ohio lawmaker introduces Bitcoin reserve bill allowing state to buy BTC</a>
Metaplanet is the second-largest <a data-ct-non-breakable="null" href="https://cointelegraph.com/explained/bitcoin-on-corporate-balance-sheets-whats-the-risk-and-reward" rel="null" target="null" text="null" title="null">corporate Bitcoin holder</a> in Asia after Boyaa Interactive and now holds 1,142 Bitcoin worth about $119.4 million.&nbsp;
On Dec. 16, Metaplanet <a data-ct-non-breakable="null" href="https://contents.xj-storage.jp/xcontents/33500/3ac88ae5/6bb8/403c/80c7/c2f8ecb81268/140120241213538773.pdf" rel="null" target="null" text="null" title="null">announced</a> its fourth bond issuance worth just under 4.5 billion Japanese yen ($30 million) with the aim of accumulating more Bitcoin, along with a plan to issue another 5 billion Japanese yen private placement ordinary bonds.&nbsp;
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/bitcoin-demand-shocks-ripple-stablecoin-brad-garlinghouse-riot-platforms-hodlers-digest/" rel="null" target="null" text="null" title="null">Bitcoin ‘demand shocks’ looming, Ripple stablecoin, and more: Hodler’s Digest, Dec. 8 – 14</a>

Metaplanet tips first operating profit in 7 years, boosted by Bitcoin

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