The Tokyo-based Bitcoin treasury company Metaplanet (TSE: 3350) reported a net loss of 95 billion yen worth an estimated $625 million for fiscal year 2025 on Monday, driven by significant valuation losses on its bitcoin holdings. The deficit contrasts with a profit of 4.4 billion yen in the prior year as mark-to-market adjustments weighed on the bottom line.
The Tokyo-based firm booked 102.2 billion yen in valuation losses as non-operating expenses. These accounting adjustments reflect the decline in bitcoin prices at the end of the fourth quarter and do not impact cash flows or business operations.
Ordinary profit swung to a loss of 96.1 billion yen from a profit of 6 billion yen in 2024. The sharp decline underscores the volatility inherent in the firm’s strategy of holding cryptocurrency as a core treasury asset.
Despite the valuation hit, the core business operations expanded. Revenue climbed 738.3% to 8.9 billion yen, while operating profit surged 1,694.5% to 6.3 billion yen. The “Bitcoin Income business,” which utilizes options transactions, contributed significantly to the top-line growth.
Metaplanet continued its aggressive accumulation strategy throughout the downturn. Total holdings reached 35,102 bitcoin as of December 31, up from 1,762 tokens a year earlier. The firm utilized a “Digital Credit” strategy, leveraging debt and preferred equity to acquire the cryptocurrency.
This capital approach included the issuance of Class B Preferred Shares, known as MERCURY, totaling 21.2 billion yen. The company also established a bitcoin-collateralized loan with a limit of $500 million to diversify funding sources beyond common equity.
Total assets swelled to 505.3 billion yen from 30.3 billion yen in the previous year. The equity ratio improved to 90.7% despite the reported losses.
Management forecasts a rebound in fiscal year 2026. The firm projects revenue will grow 79.7% to 16 billion yen and operating profit will rise 81.3% to 11.4 billion yen.
