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Metaplanet Reports ¥114.5 Billion Q1 Loss on Bitcoin Markdown

Its push to list a perpetual preferred share in Japan hinges on proving steady dividend cash flows from its bitcoin income business.

Overview

  • Metaplanet, which reported results Wednesday, logged a ¥114.5 billion net loss driven by a ¥116.4 billion non-cash markdown of its bitcoin holdings after prices fell into quarter-end.
  • Japanese rules require companies to value bitcoin at market price each quarter, which can swing net income even when no coins are sold or cash changes hands.
  • Operating performance strengthened, with revenue up 251% to ¥3.08 billion and operating profit up 283% to ¥2.27 billion on growth in bitcoin options income and hotel operations.
  • The company expanded its treasury to 40,177 BTC after buying 5,075 coins in Q1 at a weighted average near $79,000, placing it among the largest public corporate holders and controlling about 87% of listed-company BTC in Japan.
  • Management confirmed a delay to the planned preferred-share listing as exchanges seek proof of recurring dividends and as the firm builds processes for more frequent payouts in a market that typically pays once or twice a year.