After Massive Bitcoin Write Down Metaplanet Still Sounds Bullish on 2026
Metaplanet Stands by Bitcoin Strategy Despite Massive Paper Loss as Earnings Outlook Improves
Metaplanet Inc., a Tokyo-listed company best known for its aggressive Bitcoin treasury strategy, has released a major earnings update that highlights a sharp contrast between operational strength and accounting losses tied to the recent decline in Bitcoin prices.
In its revised guidance for fiscal year 2025 and preliminary outlook for 2026, Metaplanet reported stronger-than-expected business performance while acknowledging a substantial impairment loss on its Bitcoin holdings. The loss, which stems from Japan’s strict accounting rules, does not reflect cash outflows or changes in the company’s long-term strategy, according to management.
Despite recording a large paper loss, Metaplanet reaffirmed its commitment to Bitcoin, positioning itself as one of the most determined corporate holders of the digital asset in Asia.
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| Source: Xpost |
Rapid Growth in Bitcoin Holdings Defines the Past Year
Over the past year, Metaplanet has dramatically expanded its Bitcoin position. The company now holds 35,102 BTC, up from just 1,762 BTC a year earlier. This rapid accumulation has placed Metaplanet among the largest publicly known corporate Bitcoin holders in the region.
Management emphasized that the increase in Bitcoin holdings is central to the firm’s long-term vision. Rather than focusing on short-term price movements, Metaplanet measures success by its ability to grow Bitcoin per share over time.
However, the sharp decline in Bitcoin prices toward the end of December 2025 triggered a significant accounting adjustment, creating headline losses that overshadowed otherwise strong operational results.
FY2025 Results Highlight Strong Core Operations
For fiscal year 2025, Metaplanet revised its revenue forecast upward to ¥8.9 billion, reflecting improved performance across its business lines. Operating profit expectations were also raised to ¥6.3 billion, driven largely by the company’s Bitcoin income generation business.
This segment, which employs Bitcoin-related options and yield strategies, exceeded expectations in the fourth quarter. The company attributed the stronger results to expanded funding capacity and improved capital deployment flexibility.
During the year, Metaplanet issued preferred stock and established a substantial credit facility. These moves allowed the firm to scale its Bitcoin-linked strategies more efficiently while managing liquidity risk.
Executives noted that the success of this model demonstrates resilience across different market conditions. Even as Bitcoin prices declined, the company’s income-focused strategies continued to generate revenue, supporting overall profitability at the operating level.
Alongside its digital asset activities, Metaplanet’s hotel business delivered stable and predictable results. While not the primary growth engine, the hospitality segment provided a steady revenue base that helped smooth earnings volatility.
Management said the combination of innovative Bitcoin strategies and traditional operating businesses has strengthened the firm’s overall financial structure.
Bitcoin Impairment Drives Major Accounting Loss
Despite improved operating performance, Metaplanet recorded a ¥104.6 billion Bitcoin impairment loss for fiscal year 2025. The loss reflects the lower market value of Bitcoin at the end of December and follows Japanese accounting standards that require digital assets to be marked to market each quarter.
As a result, the company now expects to report a net loss of ¥76.6 billion for the fiscal year. Metaplanet stressed that this loss is entirely non-cash and does not affect its Bitcoin holdings, liquidity, or day-to-day operations.
Management urged investors to consider the impairment within the broader financial context. The company noted that foreign exchange movements partially offset the decline in Bitcoin prices. A weaker Japanese yen boosted the value of U.S. dollar-denominated assets, reducing the overall impact of the write-down.
After accounting for currency effects, the net reduction in the value of Metaplanet’s Bitcoin assets was approximately ¥82 billion, according to the company.
Executives emphasized that such volatility is an expected feature of a Bitcoin-centric balance sheet and does not change the firm’s strategic direction.
Accounting Rules Highlight Structural Challenges for Bitcoin Holders
The earnings update also underscored the challenges faced by Japanese companies holding Bitcoin under local accounting rules. Unlike some international standards, Japan’s framework requires unrealized losses to be recognized immediately, while unrealized gains are not fully reflected unless assets are sold.
This asymmetry can amplify reported losses during market downturns, even if companies have no intention of selling their Bitcoin holdings. Metaplanet said this dynamic makes quarterly results more volatile but does not reflect underlying business health.
The company reiterated its commitment to transparency, stating that it will continue to clearly separate operational performance from accounting effects related to Bitcoin price movements.
2026 Outlook Signals Confidence in Growth Strategy
Looking ahead, Metaplanet provided an optimistic forecast for fiscal year 2026. The company expects revenue to increase to ¥16 billion, nearly doubling from the revised 2025 estimate. Operating profit is projected to reach ¥11.4 billion, driven primarily by the expansion of its Bitcoin income generation business.
Management believes that its significantly larger Bitcoin position will enable more stable and scalable premium income. The company also expects its hotel operations to maintain consistent performance, contributing to overall earnings stability.
However, Metaplanet declined to provide net profit guidance for 2026, citing the unpredictable nature of Bitcoin prices. Executives said forecasting net income would be impractical given the impact of mark-to-market accounting on digital asset valuations.
Instead, the company encouraged investors to focus on operating metrics, balance sheet strength, and long-term Bitcoin accumulation trends.
A Long-Term Bet on Bitcoin Adoption
Metaplanet’s strategy places it at the forefront of corporate Bitcoin adoption in Asia, drawing comparisons to high-profile Bitcoin treasury firms in other regions. While the approach introduces significant earnings volatility, management views this as a trade-off for long-term upside.
The company’s stated objective is to increase Bitcoin per share over time, regardless of short-term market cycles. Executives argued that Bitcoin’s scarcity and growing institutional adoption support this thesis, even amid periodic price corrections.
By combining income-generating strategies with a long-term holding approach, Metaplanet aims to reduce reliance on speculative price appreciation alone.
Investor Attention Turns to Final Earnings Release
Metaplanet plans to release its final fiscal year 2025 earnings on February 16, at which point investors will receive a more detailed breakdown of financial performance and balance sheet positioning.
Until then, the company said it will continue to engage openly with shareholders and provide clear explanations of its accounting treatment and strategic decisions.
While the headline loss may raise concerns among some investors, the earnings update suggests a company doubling down on its core strategy rather than retreating from it.
As Bitcoin continues to shape corporate balance sheets worldwide, Metaplanet’s experience highlights both the risks and the conviction required to pursue a digital asset-focused approach in a volatile market.
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