Metaplanet Sinks $45M into Bitcoin, Loses Over $1B in Value
Metaplanet, a Japanese company, has made significant investments in Bitcoin (BTC), incurring substantial losses. The firm spent over $45 million operating its BTC treasury company, which holds an unrealized loss of more than $1 billion due to investing in BTC. This investment was made at a higher cost basis than Michael Saylor's strategy, with Metaplanet paying 36% more per coin.
The average cost basis for the purchased BTC is $102,502 per coin, while the current market price of BTC is around $77,600. As a result, Metaplanet has lost 24% on its investment, underperforming even idle cash in a bank account.
The company's fiscal reports reveal at least ¥7 billion (approximately $45 million) in expenses for operating the treasury operations, including issuance costs, interest to service its BTC-collateralized credit facility, dividends to preferred shareholders, and selling, general, and administrative costs. These expenses could rise above $70 million depending on the attribution of SG&A across BTC investment activities.