Metaplanet Sinks $1B on Bitcoin Investment with $45M Operating Costs
Metaplanet, a Japanese company, has incurred over $45 million in expenses to operate its Bitcoin treasury, which has resulted in an estimated loss of $1 billion from its investment in BTC. The company's strategy involved purchasing BTC at an average cost basis of $102,502 per coin, significantly higher than the $75,385 cost basis employed by Michael Saylor.
Metaplanet paid 36% more for its BTC purchases compared to Saylor's strategy. In total, the company has spent $4.41 billion to buy 43,000 BTC. Despite this massive investment, the value of BTC has dropped, resulting in a 24% loss for Metaplanet.
The company's expenses include issuance costs of ¥4.5 billion, interest payments of ¥1.9 billion on its BTC-collateralized credit facility, dividends to preferred shareholders worth ¥298 million, and SG&A (selling, general, and administrative costs) totaling ¥4.8 billion.