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Metaplanet Expands with Bitcoin Treasury: What’s Next?
Japanese publicly listed company Metaplanet has just announced the launch of its Bitcoin Treasury Operations. This bold move marks a significant shift in the company’s business strategy and aims to establish it as a key player in Japan’s rapidly growing cryptocurrency market.
As part of this new initiative, Metaplanet will be utilizing various financial instruments such as loans, equity issuances, and convertible bonds to manage its Bitcoin investments. The primary performance metric for this operation will be Bitcoin Yield. In addition to this, the company has also revealed plans to generate income by selling Bitcoin put options, which will take advantage of the cryptocurrency’s inherent volatility.
Furthermore, Metaplanet has secured an exclusive license for Bitcoin Magazine Japan. This license will enable the company to launch marketing and educational initiatives that will create new revenue streams and solidify its position as a prominent player in the Japanese crypto space.
The company believes that both its hotel operations and Bitcoin treasury will drive long-term growth. The decision to expand into Bitcoin comes at a time when Metaplanet is on track to achieve its first consolidated operating profit in seven years. Moreover, it expects a substantial revenue increase for the fiscal year ending December 31. In fact, the company has forecasted revenue of 890 million yen ($5.8 million), which represents a significant jump from the 261 million yen reported during the previous financial period.
A substantial portion of this revenue is expected to be generated through Bitcoin-related activities. Notably, Metaplanet expects earnings of 520 million yen ($3.4 million) from its put option sales. This bold move demonstrates the company’s commitment to expanding its presence in the cryptocurrency market and further diversifying its financial portfolio.
It is also worth noting that Metaplanet has seen significant appreciation in the value of its Bitcoin holdings, with unrealized gains of 7.446 billion yen ($48.6 million) on its existing Bitcoin assets. In an effort to further boost its Bitcoin reserves, the company plans to issue a fourth bond worth nearly 4.5 billion yen ($30 million). Additionally, it has set aside funds for private placement bonds totaling 5 billion yen.
In its current portfolio, Metaplanet holds approximately 1,142 BTC units, valued at around $119.73 million.
Source: cryptotale.org
