Metaplanet’s bitcoin strategy results in $1B loss and $45M in costs
Japanese company Metaplanet has spent over $45 million to operate a bitcoin treasury that now shows a $1 billion unrealized loss, according to its latest disclosures. The firm bought 43,000 bitcoin at an average price of $102,502 each, far above the current market price near $77,600.
High costs and heavy losses
Metaplanet’s expenses include at least ¥7 billion (about $45 million) in costs tied to its bitcoin strategy. These cover bond issuance fees, interest on a bitcoin-backed credit line, dividends to preferred shareholders, and general administrative costs. The total could exceed $70 million depending on how some overhead is allocated.
The company’s bitcoin holdings are now worth roughly 24% less than what it paid, creating a paper loss of over $1 billion. Its stock has fallen 82% from its June 2025 peak, despite tripling since late 2024 when it first made large bitcoin purchases.
Rising debt and interest burdens
To fund its bitcoin buys, Metaplanet initially issued traditional bonds, then shifted to zero-coupon bonds paired with warrants to delay cash payments. By June 2026, it had drawn 83% of its $500 million credit line, with interest expenses in early 2026 reaching ¥934 million—over 300 times higher than the first half of 2025.
As financing costs grew and shareholder appetite for dilution waned, the company’s stock dropped 14% year to date and 61% over the past 12 months.
What is confirmed
- Metaplanet bought 43,000 bitcoin at an average price of $102,502.
- Current bitcoin price is near $77,600, creating a 24% loss on the investment.
- Operating costs for the bitcoin treasury exceed $45 million.
- Interest expenses surged to ¥934 million in Q1 2026.
- 83% of a $500 million credit line has been used.
- Stock is down 82% from its June 2025 high.
Why this matters
The case highlights the risks of corporate bitcoin treasuries when prices fall. High purchase prices, financing costs, and leverage can amplify losses, affecting both the company’s balance sheet and its stock performance.
