Japanese Firm Reports 155% Bitcoin Yield in Q3 2024

TLDR

• Metaplanet has doubled its Bitcoin holdings to 1,018.17 BTC, with holdings now valued at $28 million
• Company acquired over 156 BTC for $10 million in October 2024 alone
• Despite Bitcoin gains, company reported $2.1 million net loss in Q3 2024
• Company achieved 155% BTC yield in Q3, surpassing MicroStrategy’s 26%
• Stock has surged 500% in six months but dropped 5% after latest report

Metaplanet, a Tokyo-based company, has revealed a $28 million increase in the value of its Bitcoin holdings, according to its latest financial report released Monday.

The company has more than doubled its Bitcoin acquisitions since late September, growing from 492.82 BTC to 1,018.17 BTC by mid-November 2024.

The firm’s Bitcoin investment strategy has yielded positive results during the recent crypto market rally, with Bitcoin prices rising more than 105% this year to reach $87,000.

The total value gain of $28 million now exceeds Metaplanet’s entire market capitalization from the beginning of the year.

In October 2024, Metaplanet made a substantial investment by acquiring over 156 BTC for approximately $10 million. This brought the company’s total Bitcoin investment to $64 million, showing their continued commitment to cryptocurrency acquisition.

The company has earned the nickname “Asia’s MicroStrategy” due to its similar approach to the American software company known for its large Bitcoin holdings.

Following this comparison, Metaplanet has adopted a metric called “BTC Yield” as its official Key Performance Indicator (KPI) to measure how Bitcoin acquisitions affect shareholder returns.

For the third quarter of 2024, Metaplanet reported a BTC yield of 155%, notably higher than MicroStrategy’s reported 26% yield for the same year.

This metric aims to provide investors with better insight into the company’s funding strategy, particularly regarding potential future Bitcoin purchases through stock issuances or convertible securities.

Despite the gains in Bitcoin value, Metaplanet’s financial results show mixed performance. The company reported a net loss of $2.1 million for the nine months ending September 30, 2024. However, this represents an improvement from the $2.7 million loss recorded during the same period in 2023.

Revenue showed positive growth, increasing by 46.3% year-over-year to reach $1.7 million. This growth was attributed to both the company’s hotel business operations and digital asset ventures.

To support its Bitcoin acquisition strategy, Metaplanet secured over $26.7 million through stock issuances and bond offerings in 2024. The company has stated its intention to continue increasing Bitcoin holdings through both capital market activities and operational income.

The company is also exploring new revenue streams, including Bitcoin options trading to generate premium income using cash or Bitcoin as collateral. This strategy aims to boost operational income while expanding their cryptocurrency holdings.

Renowned Bitcoin Core developer Adam Back has disclosed an investment in Metaplanet, noting that the company’s market cap typically ranges between 5-7 times the value of its Bitcoin holdings. This multiplier effect amplifies the impact of their treasury decisions on overall market valuation.

The company’s stock performance has been volatile but generally positive. Over the past six months, Metaplanet’s stock has increased by 500%, reaching 1,800 JPY. However, following the latest financial report, the stock experienced a 5% decline, with shares dropping to 1,766 JPY (US$11.41) in early Asian trading hours.

Company CEO Simon Gerovich highlighted the scale of their Bitcoin-related gains, stating that the valuation gain on Bitcoin holdings of 4.27 billion JPY ($28 million) surpassed their entire market capitalization at the start of the year.

本日時点で、メタプラネットのビットコイン保有に関する評価益は42億7千万円に達しました。この評価益は、年初時点での当社の時価総額を上回る金額となっております。
As of today, Metaplanet's valuation gain on its Bitcoin holdings is JPY 4.27 billion ($28 million). This gain is larger… https://t.co/JJ7ce6FJKZ pic.twitter.com/X2XXAltPh4

— Simon Gerovich (@gerovich) November 13, 2024

Metaplanet’s strategy includes selling out-of-the-money Bitcoin options to enhance returns, combining volatile market cap ratios with strategic options trading to create what they believe are favorable outcomes for shareholders.

Looking ahead, Metaplanet has confirmed its commitment to maintaining and expanding its Bitcoin position, stating in their report, “We intend to continue increasing our Bitcoin holdings through capital market activities and operational income as deemed appropriate.”

The latest trading data shows the stock at 1,766 JPY, reflecting market reaction to the company’s most recent financial disclosures and Bitcoin strategy updates.