Metaplanet’s Bold Bitcoin Bet Amidst Half-Billion Dollar Paper Loss

The Tokyo-listed corporate Bitcoin holder Metaplanet is navigating a dramatic financial reversal. What was once over $600 million in unrealized gains on its balance sheet has, within weeks, transformed into approximately $530 million in unrealized losses. Contrary to retreating, the company's leadership is doubling down on its accumulation strategy, securing new debt even as cryptocurrency prices face significant pressure.

Metaplanet's financial position is a direct reflection of Bitcoin's recent ~25% price decline. With Bitcoin currently trading near $89,000, the company's substantial holdings are now worth less than their average purchase price. Key metrics highlight the current situation:

• Total Holdings: 30,823 BTC
• Average Purchase Price: ~$108,000 per Bitcoin
• Current Unrealized Loss: ~$530 million
• Net Asset Value (NAV): ~$2.8 billion

A telling indicator of shifting investor sentiment is the evaporation of the stock's premium. Previously, Metaplanet shares traded at a 237% premium to its Bitcoin NAV. That premium has now collapsed to just 6%, suggesting a broader crisis of confidence in the pure-play crypto treasury model.

Strategic Borrowing Despite Setbacks

Undeterred by the paper losses, Metaplanet on December 5th secured a new $50 million loan, using existing Bitcoin holdings as collateral. This move increases the firm's total debt under its credit facility to $280 million. Management frames this not as recklessness but as "conservative financial policy" designed to create a buffer for periods of high volatility.

The freshly acquired capital is earmarked for three primary uses:
1. Additional Bitcoin purchases, supporting the ambitious target of holding 100,000 BTC by 2026.
2. Expansion of options trading operations for revenue generation.
3. Potential share buybacks should market conditions prove favorable.

Should investors sell immediately? Or is it worth buying Metaplanet?

Derivatives Drive Operational Income

The company's options trading desk has become its crucial operational stabilizer. By selling options contracts against its Bitcoin portfolio, Metaplanet generated roughly $15.6 million in revenue during Q3 2025. This business line now accounts for over 95% of total income, sufficiently covering dividend obligations for preferred shares without the need to liquidate core Bitcoin holdings.

Leverage, NAV, and a Buyback Signal

The market currently values Metaplanet almost purely on the liquidation value of its Bitcoin, trading at a modified NAV (mNAV) ratio of approximately 1.0x. This aligns with an industry trend where peers like "Strategy" (formerly MicroStrategy) and Semler Scientific also trade at discounts to their net asset value.

The company's debt of about $254 million against a $2.8 billion Bitcoin treasury represents a moderate leverage ratio of just under 1.1x. However, this structure carries inherent risk: because the loans are revalued daily, further declines in Bitcoin's price could increase margin pressure.

With the stock trading near its net asset value, the firm's capital allocation strategy is now activating. The board plans to prioritize share repurchases over issuing new equity for as long as the stock lacks a premium. Authorizations allow for the buyback of up to 150 million shares, with a maximum value of 75 billion yen. Metaplanet shares closed Friday's Tokyo session at 392 yen, with the 390 yen level viewed as a key support point for the trading week ahead.