Metaplanet Loses $660M on Bitcoin — Can It Still Hit 1% Supply Target by 2027?

Core Insights - Metaplanet is committed to increasing its Bitcoin holdings despite reporting over $600 million in unrealized valuation losses for FY2025 [1] - The company aims to accumulate 1% of Bitcoin's total supply by 2027, necessitating the purchase of approximately 175,000 additional BTC over the next two years [1] Financial Performance - Metaplanet reported revenue of 8.905 billion yen ($58 million), representing a 738% year-on-year increase, and an operating profit of 6.287 billion yen, up 1,694% [2] - As of December 31, 2025, the company held 35,102 Bitcoins, a significant increase from 1,762 the previous year [2] Unrealized Losses - The unrealized valuation loss of about 102.2 billion yen ($660 million) reflects the market value of Bitcoin holdings at the fiscal year-end, not losses from actual sales [3] - Under Japanese accounting standards, crypto assets must be marked to market, leading to paper gains or losses based on year-end prices [3] Target Feasibility - To achieve the goal of holding 1% of Bitcoin's fixed supply (approximately 210,000 BTC), Metaplanet needs to acquire around 175,000 additional Bitcoins, which would require tens of billions of dollars in purchases [4] - Executives indicate that recurring revenue can support preferred issuance, but the scale of accumulation suggests significant capital raises will be necessary over the next two years [4][6] Capital Structure - Every million dollars of recurring revenue can support about $20 million worth of preferreds, according to the company's president [6] - Preferreds are structured as perpetual, allowing Metaplanet to maintain long-term Bitcoin holdings while providing investors with income-like exposure and Bitcoin-linked upside [8]