Metaplanet Announces $28 Million Yield From Its Bitcoin Holdings
Metaplanet Increases Bitcoin Holdings to $28M in Q3 2024 but Posts $2.1M Deficit; Stock Drops 5%.
Key Takeaways:
- Metaplanet saw a $28 million increase in Bitcoin holdings for Q3 2024, totaling $28 million.
- The company posts a $2.1 million deficit for the period despite Bitcoin gains.
- Metaplanet’s stock saw a 5% decline in value following the BTC yield disclosure.
In its third quarter (Q3) financial report on November 13, Metaplanet revealed a $28 million return on its Bitcoin holdings. This growth comes amid a strong crypto rally, with Bitcoin soaring to $90K, marking a 135.3% rise over the past year.
Despite the impressive gain in holdings, Metaplanet’s stock slipped 5% – falling to 1,766 JPY (US$11.41) in early trading hours.
Metaplanet’s Bitcoin Holdings Reach 1,018.17 BTC
As detailed in the financial report, Metaplanet's current Bitcoin holdings stand at 1,018.17 BTC, a significant increase from 492.82 BTC in late September. This growth follows a $28 million profit from Bitcoin investments, surpassing the company’s market capitalization at the start of the year.
Despite the gains, the company reported a net loss of $2.1 million for the nine months ending September 30, 2024. This is an improvement over last year's $2.7 million loss for the same period.
The Japanese investment firm’s revenue saw a 46.3% increase year-over-year, totaling $1.07 million, driven by its hotel and digital asset ventures.
Additionally, Metaplanet raised over $26.7 million this year through bond offerings and stock issuances.
While Metaplanet Bitcoin's profit indicates continuous growth, its stock dropped 5% after the earnings announcement, with shares falling to 1,766 JPY (US$11.41) in early trading hours.
Nevertheless, the company plans to record more Bitcoin yields as it explores Bitcoin options trading and aims to generate premium income to improve operational growth and expand its Bitcoin portfolio.
Last month, Metaplanet announced the adoption of “BTC Yield,” a key performance indicator (KPI) pioneered by MicroStrategy, the largest corporate holder of Bitcoin. The indicator is designed to track the success of its Bitcoin acquisition strategy and provide clarity to investors on its funding approach.
This KPI aims to help investors better understand the firm’s financing strategy, especially when Metaplanet issues common stock or convertible securities to fund Bitcoin purchases.
Metaplanet seeks to improve its investor relations through this strategy while solidifying its position in the growing cryptocurrency market.
Could Metaplanet's BTC Investment Plan Mirror MicroStrategy Success?
Metaplanet has been steadily following the footsteps of MicroStrategy, the American business intelligence firm known for its aggressive Bitcoin investment strategy.
This week, MicroStrategy made headlines with a massive Bitcoin acquisition, purchasing 27,200 BTC for $2 billion at an average price of $74,463 per coin.
The company now holds approximately 279,420 BTC, with a cumulative purchase price of around $11.9 billion.
This translates into an average of $42,692 per Bitcoin, including all fees and expenses. Alongside this, MicroStrategy reported a solid Bitcoin yield of 7.3% quarter-to-date (QTD) and an impressive 26.4% year-to-date (YTD). Metaplanet has taken a page from MicroStrategy’s playbook by adopting similar strategies.
The firm’s Bitcoin yield metrics closely resemble MicroStrategy's, signaling its commitment to long-term growth. If Metaplanet continues on this path, it’s expected to see a major appreciation in its stock price in the coming years, similar to the soaring share price of MicroStrategy.
The growing optimism surrounding Bitcoin also has external factors contributing to its potential. With Donald Trump's election win, investors are increasingly bullish on the future of Bitcoin, especially as more corporations consider adding Bitcoin to their corporate treasuries.
Jimmy Aki
Drawing from his background in economics, Jimmy has monitored blockchain development for years, firmly believing in its power to democratise finance. Beyond offering commentary on the latest crypto developments, he also spends his time analysing open-source codes of promising projects on GitHub. Jimmy holds Bitcoin and Ethereum.
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