Metaplanet anticipates its first operating profit in seven years
2024-12-18
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Metaplanet, a venture capital firm in its early stages, expects to report its first combined operating profit in seven years. The event is mainly a result of the addition of Bitcoin to its balance sheet for the first time in the company’s history. 
On December 18, in a statement, Metaplanet revealed that it is looking to make about 890 million Japanese yen accounting for $5.8 million in revenue in this year. In the last year, it just managed to make 261 million Japanese yen. 
It reversed its operating profit to reach 270 million Japanese yen, a significant improvement from a loss of approximately 468 million yen. The company stated that most of its revenue comes from selling Bitcoin put options, which generated around 520 million yen in earnings.The Robust performance of Metaplanet 
Many companies are increasingly adopting Bitcoin strategies, with the number continuing to rise alongside Bitcoin’s upward trend. This approach proves advantageous as it enhances both the value and stock prices of these companies.
In a recent statement, the company noted that, alongside the strong performance of its hotel business, it is on track to report a combined operating profit for the first time since FY 2017. Metaplanet, a publicly traded investment firm based in Tokyo, made a significant shift in April by incorporating Bitcoin as a treasury asset to protect against currency devaluation.
Through its subsidiary, Wen Tokyo Co., Metaplanet has acquired and is managing the Royal Oak Hotel in Tokyo’s Gotanda district. The company emphasized that its treasury strategy is not limited to Bitcoin and that it plans to diversify its approach moving forward.The second-largest corporate Bitcoin holder
On December 18, in a different investor disclosure, Metaplanet revealed that it would set up Bitcoin collection and management as a formal business line, which will witness it employ loans, equity, convertible bonds, and different financial instruments to buy and acquire Bitcoin. 
It said it will carry on using put option sales as a main revenue driver. Put options are contractual deals giving the capability to the owner to sell an underlying asset at a pre-agreed value known as a strike price to the issuer. 
It is a way for investors to lock in a minimum selling price for an asset they hold to stay away from more losses. Metaplanet, one after the other gains a premium for each put option contract it sells. 
The investment company also targets to set up revenue streams from Bitcoin-associated marketing activities through its latest acquired license to run a Japanese version of the news outlet Bitcoin Magazine. 
Metaplanet has managed to position itself as Asia’s second-largest corporate Bitcoin holder following Boyaa Interactive. In the current scenario, it holds about 1,142 BTC whose worth is estimated at $119.4 million. 