Is this a bold turnaround strategy or corporate recklessness? Metaplanet, Japan’s prominent Bitcoin-focused investment firm, is making waves across financial markets with its latest financial maneuver. The company has secured a $130 million loan, a move that has left market observers questioning the wisdom of borrowing substantial funds while reporting significant unrealized losses on its cryptocurrency holdings.
Troubling Financial Position
The company’s current financial standing reveals the magnitude of its challenges. Metaplanet is sitting on approximately $635 million in unrealized losses from its cryptocurrency portfolio. Despite this precarious position, management has chosen to increase its exposure by tapping into a $500 million credit facility. The newly acquired debt is collateralized by the company’s existing Bitcoin reserves, which consist of 30,823 coins with a current market valuation around $2.7 billion.
Key financial metrics highlight the pressure on Metaplanet’s share price:
- Average Bitcoin acquisition cost: $108,070 per coin
- Total cost basis: $3.33 billion
- Current unrealized loss: $635.97 million (representing a 19.1% decline)
- Valuation metric: Shares trading below net asset value (NAV of 0.99)
This situation marks an unfortunate milestone for the cryptocurrency sector—Metaplanet has become the first major Bitcoin treasury company to consistently trade below its net asset value despite maintaining an aggressive accumulation strategy since April 2025.
Market Reaction and Capital Allocation
Investor sentiment has reflected growing concerns about these developments. The company’s shares have experienced a dramatic decline throughout 2025, plummeting from previous highs around 1,930 yen to current trading levels between 357 and 379 yen. This represents a staggering erosion of market capitalization that has wiped out billions in valuation.
Should investors sell immediately? Or is it worth buying Metaplanet?
Management has outlined plans to deploy the borrowed $130 million across three strategic areas: additional Bitcoin purchases, expansion of options trading operations for revenue generation, and share repurchases. To further address the gap between share price and intrinsic value, the company has introduced new preferred share classes dubbed “Mars” and “Mercury.” The Mercury tranche alone recently raised $135 million, attracting investors with a 4.9% dividend yield.
Broader Industry Implications
Metaplanet’s situation reflects wider challenges across the Bitcoin treasury sector. The initial euphoria has dissipated, with 26 of the 168 companies holding Bitcoin on their balance sheets now trading below the value of their cryptocurrency reserves.
Corporate Bitcoin accumulation has also slowed dramatically across the market. September saw purchases collapse to just 1,428 Bitcoin—a 95% decrease from July levels. Against this trend, Metaplanet continues to pursue its ambitious target of holding 210,000 Bitcoin by 2027.
Whether this aggressive debt-funded strategy will prove successful or culminate in financial distress remains uncertain. What is clear is that Metaplanet shares currently represent a high-risk proposition that demands strong conviction from investors.
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