Metaplanet's Bitcoin Writedown Buried Under Revenue Surge

Japanese tech firm Metaplanet has posted a staggering net loss of approximately $619 million, largely due to a $666 million impairment on its Bitcoin holdings. The company's revenue surged an impressive 738% over the past year, but this growth was overshadowed by the decline in cryptocurrency prices.

Metaplanet now holds 35,102 Bitcoins, a near 1,900% increase from last year. However, management felt forced to take a writedown due to the falling price of Bitcoin. The company's operating profit for the year was 6.29 billion yen, and its equity ratio remains solid at 90.7%, indicating that the loss is largely a mark-to-market hit rather than a cash crisis.

Looking ahead, Metaplanet has set ambitious targets for the current fiscal year ending in 2026: revenue of 16 billion yen and an operating profit of 11.4 billion yen. However, the company's stock price continues to suffer, plummeting by 88.21% over the past twelve months to close at €1.30.

Management is attempting to shore up investor support with a loyalty programme offering various rewards and perks for long-term holders. The scheme includes a Bitcoin lottery hosted by Coincheck, cashback on new Binance Japan accounts, and deep fee discounts from OKJ, among other benefits.