Summary

Metaplanet Inc. operates its business primarily through a Bitcoin-focused treasury strategy. Positioning Bitcoin as a long-term reserve asset, the company’s core strategy is to propose and support its utilization for clients. In addition to acquiring and accumulating Bitcoin, Metaplanet also provides educational and consulting services. Having established itself as the largest corporate holder of Bitcoin in Japan, the company aims for revenue of ¥1,062 million in FY2024, representing a 306% year-on-year increase in its Bitcoin treasury business. Its Bitcoin holdings have reached 1,762 BTC, and it is promoting market adoption through corporate consulting and educational initiatives.

In its hotel business, centered on “Hotel Royal Oak Gotanda,” the company is advancing the redevelopment of a new Bitcoin-themed brand, “The Bitcoin Hotel,” which serves to foster engagement with customers through hospitality experiences. In line with the anticipated growth of the Bitcoin market, Metaplanet plans to expand its holdings to 214,000 BTC and intends to maintain competitiveness through capital policies that emphasize security and cost efficiency.

Financial performance is expected to recover sharply in FY2024, with ordinary income projected to reach ¥5,993 million, largely driven by valuation gains related to Bitcoin. The income statement forecasts revenue of ¥1,062 million with a high profit margin of 93.8%, and operating income is expected to reach ¥350 million. The balance sheet shows total assets of ¥30,325 million and an equity ratio of 67.8%, indicating a sound financial foundation. The cash flow statement records ¥623 million in cash flow from operating activities, while cash flow from investing activities stands at negative ¥23,452 million due to aggressive investment in Bitcoin, reflecting a long-term growth strategy.

Under its medium-term management plan, the company aims for sustainable growth supported by the expansion of the Bitcoin market, while strengthening risk management and transparent governance. Regarding shareholder returns, the company has decided not to pay dividends and instead plans to utilize retained earnings for new business development. It is also implementing share buybacks to enhance shareholder value. Business risks include Bitcoin market volatility, regulatory changes, and financial risks, requiring flexible responses. Metaplanet is pursuing a growth strategy centered on Bitcoin with the goal of sustainable development.

1. FY2024 Cumulative Performance Overview

In FY2024, Metaplanet achieved a significant recovery in performance due to the success of its Bitcoin treasury business. Revenue increased 306% year-on-year to ¥1,062 million, and operating income turned positive for the first time at ¥350 million. Ordinary income improved substantially to ¥5,993 million, and net income attributable to owners of the parent is projected to reach ¥4,439 million.

This performance improvement is attributable to valuation gains on Bitcoin and cost reductions, with the increase in Bitcoin holdings strengthening the company’s competitive position in the market. According to the income statement analysis, cost of sales amounted to ¥66,094 million, gross profit reached ¥996 million, and the gross profit margin was a high 93.8%. SG&A expenses declined year-on-year to ¥645 million, demonstrating improved operational efficiency.

On the balance sheet, total assets increased to ¥30,325 million, and current assets also rose, reflecting enhanced liquidity. The cash flow statement shows positive operating cash flow of ¥623 million. Although investing cash flow was negative ¥23,452 million, this was due to proactive investment in Bitcoin. Overall, backed by a robust Bitcoin market environment, Metaplanet is reinforcing its commitment to sustainable growth, and expectations remain high for future performance.

2. FY2024 Earnings Outlook

For FY2024, the company forecasts revenue of ¥1,062 million, ordinary income of ¥5,993 million, and net income attributable to owners of the parent of ¥4,439 million, representing significant increases in both revenue and profit. The success of the Bitcoin treasury business is the primary driver, with projected revenue growth of 306% year-on-year.

This business model positions Bitcoin as a long-term reserve asset and supports corporate asset management by providing educational and consulting services to clients. Bitcoin holdings have reached 1,762 BTC, contributing to the company’s competitive advantage. Valuation gains related to Bitcoin are expected to significantly contribute to ordinary income, and operating income is projected to turn positive for the first time.

In the hotel segment, the introduction of the new Bitcoin-themed brand “The Bitcoin Hotel” is underway and is expected to serve as a new source of revenue. Market trends indicate growing investment demand for Bitcoin, and the company is pursuing strategic initiatives aligned with this trend. While risks include Bitcoin market volatility and regulatory changes, the company is committed to thorough risk management and flexible 대응. Overall, Metaplanet continues to advance a growth strategy centered on Bitcoin, with expectations for sustained earnings growth.

3. Medium- to Long-Term Growth Strategy

Metaplanet has formulated a medium-term management plan aimed at achieving sustainable growth and maximizing shareholder value. The company is pursuing a strategy dependent on the growth of the Bitcoin market and technological innovation, with a focus on increasing its Bitcoin holdings.

Specifically, funds raised through the exercise of stock acquisition rights will be allocated entirely to Bitcoin purchases. The company targets holdings of 1,762 BTC in 2024, 10,000 BTC in 2025, and 21,000 BTC in 2026. This Bitcoin treasury strategy aims to diversify corporate earnings, and the launch of a new Bitcoin income business utilizing option premiums is also anticipated.

In addition, renovation plans are underway to transform “Hotel Royal Oak Gotanda” into a Bitcoin-integrated hospitality facility, aiming to secure new revenue streams by integrating with the tourism sector. To maintain financial soundness, the company is working to improve its ordinary income margin and strengthen risk management. It is also introducing technology to enhance operational efficiency and responding flexibly to Bitcoin market volatility and regulatory changes.

To achieve sustainable growth, it is essential to enhance corporate transparency and strengthen shareholder returns. Investors are advised to closely monitor these initiatives. Metaplanet is steadily advancing its medium-term management plan centered on its Bitcoin strategy, striving for sustainable growth through its daily business operations.

・ In FY2024, Metaplanet expects revenue to increase 306% year-on-year to ¥1,062 million due to the success of its Bitcoin treasury business, with operating income turning positive for the first time and ordinary income showing significant improvement.

・ In FY2024, substantial increases in revenue and profit are anticipated, particularly due to valuation gains related to Bitcoin, which are expected to contribute significantly to ordinary income and result in positive operating income.

・ Leveraging growth in the Bitcoin market, Metaplanet has formulated a plan to increase its Bitcoin holdings from 2024 through 2026, aiming to diversify corporate earnings and secure new revenue streams.

Business Overview

1. Overview of the Business Model

Metaplanet Inc. operates a business model centered on a Bitcoin-focused treasury strategy. The company’s fundamental approach is to position Bitcoin as a long-term reserve asset and promote its effective utilization for clients. Specifically, in addition to acquiring and accumulating Bitcoin, the company provides related educational and consulting services to support corporations in adopting Bitcoin as part of their asset portfolios. Metaplanet has established itself as the largest corporate holder of Bitcoin in Japan.

This business model aims to create value beyond simple trading or investment, incorporating monetization strategies that leverage Bitcoin’s volatility. Through this approach, the company provides clients with investment strategies and risk management solutions based on market trends. By positioning Bitcoin as a digital asset and promoting transparent asset management, Metaplanet contributes to the creation of sustainable value. Going forward, the company intends to pursue further growth through new business initiatives centered on Bitcoin.

2. Main Business Segments

Metaplanet’s operations are broadly divided into two segments: the Bitcoin Treasury Business and the Hotel Business.

In FY2024, the Bitcoin Treasury Business aims to achieve revenue of ¥1,062 million, representing a 306% year-on-year increase. Its primary revenue source is the acquisition and management of Bitcoin. In particular, the company’s holdings have reached 1,762 BTC, strengthening its competitive position in the market.

Within the Bitcoin Treasury Business, Metaplanet promotes corporate adoption of Bitcoin through consulting and educational activities. The company also places emphasis on disseminating practical knowledge and strategic perspectives on Bitcoin to investors, which is expected to expand its customer base and accelerate market adoption.

Meanwhile, the Hotel Business is centered on “Hotel Royal Oak Gotanda,” which is currently undergoing brand redevelopment as “The Bitcoin Hotel.” This segment also serves as a platform for engagement, offering guests an opportunity to deepen their understanding of Bitcoin through their hospitality experience. Through coordination between the two segments, Metaplanet seeks to achieve diversification and sustainable growth.

3. Market Position and Competitive Advantages

Metaplanet has established itself as Japan’s only dedicated Bitcoin treasury company and is recognized as a prominent corporate Bitcoin holder in Asia. Its competitive advantages stem primarily from its large-scale Bitcoin holdings and high market liquidity, enabling it to maintain strong competitiveness relative to other firms.

In addition, Metaplanet actively develops businesses utilizing Bitcoin derivatives trading and option premiums, employing diversified methods to generate stable profits. Unlike many competitors, the company evaluates Bitcoin as a safe asset and provides clients with a high level of reliability, thereby strengthening its market position.

Furthermore, through its Bitcoin education initiatives, Metaplanet enhances clients’ understanding of Bitcoin and promotes broader adoption. By successfully reaching a wider range of customers, the company has reinforced its standing within the industry. Going forward, further expansion leveraging these competitive strengths is anticipated.

4. Market Trends and Growth Opportunities

The Bitcoin market in which Metaplanet operates is experiencing increasing investor interest. In particular, economic instability following the COVID-19 pandemic has elevated Bitcoin’s evaluation as a digital asset, drawing attention to it as an alternative to traditional investment products. The overall rise in demand for digital assets represents a favorable tailwind for Metaplanet.

Within this environment, the company has formulated a plan to expand its Bitcoin holdings to 214,000 BTC. Through capital policies that emphasize security and cost efficiency, Metaplanet intends to sustain its competitive strength. It also plans to enhance its Bitcoin income business to further expand monetization opportunities.

By capturing these growth opportunities, Metaplanet aims to further strengthen customer trust through the enhancement of educational programs and consulting services. Continued innovation in its business model through the use of IT technologies is expected to maintain its strong market presence and support sustainable business growth.

5. Risk Factors and Countermeasures

The Bitcoin market is inherently characterized by high volatility, which may impact Metaplanet’s business. Price fluctuations directly affect asset valuations and may place pressure on financial performance. To address this, the company is committed to thorough risk management and plans to hedge risks through appropriate derivatives transactions.

Regulatory changes also require careful attention. As blockchain technology and cryptocurrencies are subject to varying regulations across jurisdictions, the company must closely monitor how new laws and regulatory frameworks may affect the market and respond flexibly. In particular, Metaplanet is actively engaged in educational initiatives to improve awareness both domestically and internationally in response to new regulatory developments.

Amid intensifying competition, Metaplanet is focused on differentiating itself through high-quality service offerings and by building strong relationships of trust with clients. Through these efforts, the company aims to improve long-term customer retention and further solidify its position within the Bitcoin market.

This chapter has outlined Metaplanet’s business model, market position, growth strategy, and associated risks and countermeasures. For general investors, Metaplanet can be regarded as a company capable of responding flexibly to changes in the Bitcoin market, making it an increasingly promising entity. The next chapter will provide a detailed analysis of financial performance trends and offer an evaluation based on those findings.

Performance Trends

1. Recent Performance Overview

Metaplanet’s financial performance has shown repeated fluctuations in recent years. In FY2024 in particular, the company achieved a sharp recovery from its previous growth trajectory. To understand this change, it is necessary to review the figures from FY2019 through FY2023.

Revenue stood at ¥2,510 million in FY2019, but declined successively to ¥785 million in FY2020 and ¥518 million in FY2021. This downward trend continued through FY2022, when revenue fell to ¥366 million, and further declined to a low of ¥262 million in FY2023. However, in FY2024, the newly introduced Bitcoin treasury business achieved significant success, driving revenue to ¥1,062 million—an increase of 306% year-on-year. This recovery reflects a revision of management strategy, with the success of the Bitcoin business clearly evident.

Ordinary income also improved significantly. The company recorded losses of ¥313 million in FY2019, ¥2,188 million in FY2020, and ¥1,231 million in FY2021. However, in FY2024, it is expected to return to profitability, reaching ¥5,993 million. A major contributing factor to this turnaround has been substantial valuation gains related to Bitcoin. Net income attributable to owners of the parent followed a similar trend, with FY2024 projected to post a significant profit of ¥4,439 million.

These results are closely linked to the strong performance of the Bitcoin market. The transition to a new business model centered on Bitcoin has had a considerable impact on the company’s growth. For investors, understanding this recovery trend and transformation of the business model is crucial, as it forms the foundation for future growth.

2.  Income Statement Analysis

In analyzing Metaplanet’s income statement, attention should be paid to trends in revenue, cost of sales, and profit margins. Revenue for FY2024 reached ¥1,062 million, representing a remarkable growth rate. Notably, cost of sales amounted to ¥66,094 million, resulting in gross profit of ¥996 million. The gross profit margin stood at an exceptionally high 93.8%, reflecting the high-margin income generated by the Bitcoin business.

The recent growth in revenue can be attributed to the strengthening of Bitcoin positions and increased option-related income. Successful cost management has also contributed to improved profitability.

From the perspective of selling, general and administrative (SG&A) expenses, costs declined year-on-year to ¥645 million in FY2024, demonstrating progress in cost reductions. This decrease reflects improved operational efficiency and has helped alleviate pressure on earnings.

Operating income reached ¥350 million, marking the first return to profitability and evidencing the effectiveness of management’s strategy. In addition, extraordinary gains of ¥330 million—primarily from debt forgiveness—positively impacted results. With no extraordinary losses recorded, it is clear that the company’s core operations have progressed steadily.

Overall, the changes in these figures suggest that the company’s revenue structure has been significantly transformed by its new Bitcoin strategy. The income statement indicates improved financial health and strengthens expectations for future growth.

3. Balance Sheet Analysis

In analyzing the balance sheet, focus should be placed on total assets, current assets, fixed assets, liabilities, and equity composition. Total assets at the end of FY2024 reached ¥30,325 million, representing a substantial increase from the previous year. This increase was largely driven by the expansion of Bitcoin holdings, indicating a shift in the quality and composition of assets.

Current assets increased year-on-year, with cash and cash equivalents reaching ¥553 million. This rise in cash suggests improved operational stability and strengthened liquidity.

Fixed assets remained at roughly the same level, reflecting a management policy that incorporates risk control considerations. Total interest-bearing debt amounted to ¥131 million, which is considered a healthy level compared to peers. The debt ratio has improved over the past several years, and the equity ratio reached 67.8%. This stable capital structure is expected to contribute to improved future cash flow.

Through this balance sheet analysis, it becomes evident how Bitcoin holdings have influenced both assets and liabilities. While maintaining liquidity, the company is pursuing strategic growth, raising expectations for future developments.

4. Cash Flow Statement Analysis

The cash flow statement should be analyzed in terms of cash flows from operating, investing, and financing activities. In FY2024, cash flow from operating activities was positive at ¥623 million, reflecting the growth of the Bitcoin-related business. This demonstrates disciplined management and the establishment of sustainable profitability, clarifying the company’s future direction.

In contrast, cash flow from investing activities recorded a substantial outflow of ¥23,452 million, primarily attributable to aggressive investment in Bitcoin. This reflects a long-term growth strategy and suggests expectations for future returns.

Cash flow from financing activities amounted to ¥22,570 million, indicating that funds raised from capital markets were allocated toward expanding Bitcoin assets and that management resources were utilized efficiently. As a result, overall cash flows are being managed in alignment with the company’s growth strategy.

The cash flow analysis indicates that Metaplanet is both formulating and executing its growth strategy while maintaining disciplined cash flow management. Continued growth in free cash flow is anticipated, further strengthening the company’s stable management foundation.

5. Analysis of Key Performance Indicators

Metaplanet’s performance indicators play an important role in evaluating its future growth potential. In FY2024, return on equity (ROE) reached 49.1%, enhancing confidence among shareholders. ROE is a critical measure of how efficiently the company utilizes capital to generate profits. Return on assets (ROA) is also expected to improve, reflecting more efficient use of management resources.

EBITDA showed steady growth, reaching ¥6,348 million. This confirms strengthened operational profitability and supports expectations for future growth. As monetization of Bitcoin-related activities proceeds efficiently, further improvements in profit margins can be anticipated.

These favorable trends in performance indicators strongly suggest that Metaplanet is pursuing sustainable growth and that its Bitcoin-centered strategy is progressing successfully. In considering future prospects, the trajectory of these indicators will remain a key focal point.

Metaplanet appears to be emerging from several years of performance volatility, and continued growth centered on Bitcoin is anticipated. While risks remain due to corporate strategy and market conditions, the strengthening of its growth foundation supports expectations for sustainable development. Investors should carefully monitor these performance trends and base their strategic decisions on the conclusions drawn from them.

Medium-Term Management Plan / Growth Strategy

1. Business Environment and Management Policy

Metaplanet has formulated a medium-term management plan designed to respond to a rapidly changing business environment. The company aims to achieve sustainable growth and maximize shareholder value, with a strategy that is highly dependent on the expansion of the Bitcoin market and ongoing technological innovation. As a Bitcoin treasury company, it has established a clear market position and is focused on securing new revenue sources, setting specific targets to increase its Bitcoin holdings as part of this initiative.

According to experts, the plan is highly strategic, particularly in its emphasis on profitability as a core management principle. Although the company struggled with operating losses in the past, it has succeeded in improving business earnings and strengthening its capital base through measures such as the issuance of stock acquisition rights. For investors, the company’s commitment to enhancing profit margins and building a sound financial foundation provides reassurance.

Such a management approach is essential for achieving sustainable growth in an increasingly competitive industry. The implementation of flexible measures is expected to contribute to improved performance in the years ahead.

2. Bitcoin Treasury Strategy and Investment Plan

Metaplanet is strengthening its proactive investment in Bitcoin-related businesses with the aim of expanding asset value. Specifically, the company plans to allocate the entire ¥116.65 billion raised through the exercise of stock acquisition rights to the purchase of Bitcoin. Through this investment, Bitcoin holdings are projected to reach 1,762 BTC in 2024, 10,000 BTC by the end of 2025, and 21,000 BTC by the end of 2026—clear and ambitious targets.

This plan has attracted attention among experts, particularly the launch of a new Bitcoin income business utilizing option premiums, which is expected to further diversify corporate earnings. From an investor perspective, the company’s strong commitment to Bitcoin may contribute to long-term economic stability, making it important to monitor developments in this area.

Moreover, the business model of monetizing Bitcoin’s volatility can be regarded as a key factor in establishing a sustainable financial foundation. At the same time, flexible responses to potential market fluctuations remain essential, underscoring the importance of comprehensive risk management.

3. Key Initiatives and Progress in Segment Strategies

Metaplanet is accelerating the development of new businesses based on its Bitcoin treasury strategy. One major initiative is the renovation of its hotel business, with plans underway to transform “Hotel Royal Oak Gotanda” into a Bitcoin-integrated hospitality facility. This initiative is expected to secure new revenue sources while differentiating the company within the hotel industry.

Experts suggest that a lodging experience centered on Bitcoin has strong potential to create innovation through integration with the tourism sector. For investors, the success of such new businesses could serve as infrastructure supporting the growth of the treasury business. Additionally, the company plans to introduce talent development programs to strengthen its overall capabilities, with improved employee skills expected to enhance service quality for customers.

By clearly defining segment-specific growth strategies and expanding its Bitcoin-related businesses, Metaplanet is laying the foundation for sustainable corporate growth. A diversified approach helps distribute risk while establishing a stable earnings base across multiple business lines.

4. Financial Soundness and Risk Management

Metaplanet places top priority on maintaining financial soundness and is working to improve its ordinary income margin relative to revenue. The issuance of stock acquisition rights and the strategic use of raised capital have been key measures in overcoming past operating losses. However, achieving stable future performance will require continued vigilance regarding market trends and strengthened risk management.

Experts point out that the inherent volatility and price fluctuations of the Bitcoin market present ongoing challenges. Therefore, closely monitoring developments in the broader Bitcoin economy and responding flexibly are critical factors for sustainable growth. A strategic approach to risk management will help secure operational stability and generate long-term value.

Furthermore, the introduction of technology to enhance operational efficiency offers a pathway not only to cost reduction but also to the creation of new added value. Strengthening security frameworks and streamlining transaction processes can increase customer trust and secure repeat business, ultimately contributing to overall performance improvement.

5. Future Outlook for Sustainable Growth

Metaplanet’s medium-term management plan pursues sustainable growth with a strong focus on Bitcoin and is expected to maintain this direction beyond FY2025. In particular, the expansion of Bitcoin holdings, facility renovations, and the development of new services are anticipated to underpin the company’s long-term growth.

Enhancing transparency and strengthening shareholder returns are also important elements of the strategy. By promoting new Bitcoin-related businesses, the company intends to maintain its competitive advantage in the Asian market. This may provide investors with opportunities to benefit from structural changes in the Bitcoin market. Since progress in executing corporate strategy directly affects investor returns, careful monitoring remains essential.

To maintain its market position, Metaplanet must continue balancing strategic investments with effective risk management. Timely management decisions that respond to market changes are indispensable for achieving sustainable growth and value creation.

Metaplanet is steadily implementing its medium-term management plan centered on its Bitcoin strategy and continues to advance daily operations with the goal of sustainable growth. Investors are encouraged to closely observe these initiatives and make informed strategic decisions accordingly.

News & Topics

1. Business Transformation and Launch of the Bitcoin Treasury Business

In FY2024, Metaplanet fully transitioned to a Bitcoin treasury business. This decision responded to rapid digitalization and changes in the economic environment, marking the establishment of a strategic foundation aimed at enhancing shareholder value. In April 2024, the company adopted a Bitcoin treasury strategy, and by December of the same year, it had successfully increased its Bitcoin holdings to 1,762 BTC.

As a result, the company established its position as one of Asia’s leading Bitcoin treasury firms and developed a framework for providing asset management services tailored to customer needs. The Bitcoin treasury business recorded revenue of ¥1,062 million in FY2024, representing a 306% year-on-year increase, and achieved its first operating profit since 2017. This performance was driven by factors such as Bitcoin valuation gains and reductions in personnel costs, raising expectations for continued growth.

Investors should closely monitor how the company leverages the Bitcoin treasury business to sustain growth momentum. However, attention must also be paid to the risks associated with Bitcoin market volatility. While short-term performance improvements are anticipated, in the medium to long term, fluctuations in Bitcoin prices may significantly affect corporate earnings.

2. Global Fundraising Strategy

As part of its capital market strategy, Metaplanet issued stock acquisition rights with exercise price adjustment clauses, achieving highly capital-efficient equity financing. Through this initiative, the company raised approximately ¥116.65 billion, with plans to allocate the entire amount to Bitcoin purchases. This fundraising strengthens the foundation for expanding Bitcoin holdings and supports targets of 10,000 BTC by the end of 2025 and 21,000 BTC by the end of 2026.

The company has emphasized transparency in fundraising and strengthened communication with shareholders, demonstrating progress toward maximizing corporate value and achieving sustainable growth.

Investors should recognize that this capital raise is a key factor in building future revenue sources. At the same time, careful observation of the market’s response and the broader impact of the fundraising on the company is essential. If the Bitcoin market grows beyond expectations in the medium to long term, positive effects on corporate performance can be anticipated.

3. Restructuring of the Hotel Business and New Branding

Metaplanet has reorganized its long-standing budget hotel business to shift toward a more profitable business model. In particular, based on “Hotel Royal Oak Gotanda” in Tokyo, the company plans to rebrand the property as “The Bitcoin Hotel” in 2025. This new brand aims to provide a Bitcoin-themed lodging experience and deliver next-generation experiential value to customers.

The restructuring of the hotel business is expected to generate stable revenue through enhanced marketing initiatives and service improvements. The introduction of a Bitcoin-themed brand represents an innovative effort to increase appeal within a targeted market segment.

For investors, the hotel business has the potential to become a new revenue source, making its future performance impact noteworthy. Over the medium to long term, strengthening brand power and improving customer loyalty are likely to enhance overall corporate value.

4. Improvement in Financial Performance

Total assets for FY2024 reached ¥30,325 million, representing a 1,720% increase year-on-year. Net income for the period rose significantly to ¥4,439 million, indicating substantial financial improvement. In particular, unrealized gains from Bitcoin holdings amounted to ¥5,457 million, contributing to enhanced profitability.

These improvements demonstrate the company’s clear growth strategy. Through proactive capital policy measures and continued cost reductions, further earnings growth is expected.

Investors are likely to evaluate the company’s growth potential based on these financial improvements. While strong short-term performance is anticipated, the execution of strategies to sustain medium- to long-term growth remains crucial.

5. Strengthened Risk Management and Transparent Governance

Metaplanet has reinforced its risk management framework and reaffirmed the importance of risk management in its Bitcoin-related businesses. Through information sharing at board meetings and executive sessions, the company evaluates and improves internal controls over business processes while enhancing the quality of risk-related information.

To achieve transparent management, the company is strengthening communication with shareholders and enhancing corporate governance. These efforts aim to ensure reliable corporate operations and reinforce relationships with customers.

Investors should recognize that strengthened risk management and transparency contribute to understanding the company’s financial soundness and corporate culture. Enhanced transparency is likely to improve investor confidence and increase corporate value. Over the medium to long term, the robustness of risk countermeasures will be tested alongside corporate growth.

6. Leadership Vision and Future Outlook

The company’s leadership envisions Bitcoin as a reserve asset and seeks to achieve sustainable growth through its strategic use. By establishing a risk management framework aligned with the expansion of Bitcoin-related businesses, the company aims to enhance its competitiveness within the industry. Continued development as an internationally competitive enterprise is anticipated.

By positioning itself as a driving force within the Bitcoin economy, the company seeks further expansion. This demonstrates a commitment to structural transformation in response to currency fluctuations and ongoing economic uncertainty.

Investors should pay close attention to this vision and follow the strategies and initiatives that support the company’s long-term objectives. Establishing industry leadership is expected to contribute significantly to corporate sustainability.

7. Conclusion

Overall, Metaplanet’s Bitcoin strategy and business developments represent positive drivers of corporate growth. New business initiatives, fundraising activities, and strengthened risk management have contributed to a favorable impression among investors. As expectations for future growth increase, investors should closely monitor market trends and carefully assess the company’s next steps.

These initiatives demonstrate that Metaplanet is building a solid foundation to adapt to a new financial era and pursue future success, supporting expectations for sustainable growth.

Company Overview

1. Basic Corporate Information

Metaplanet Inc. is headquartered in Roppongi, Minato-ku, Tokyo. The company was established in June 1999 and was originally founded as Daiki Sound Co., Ltd., primarily engaged in the planning, production, and sales of music CDs and records. However, after turning its attention to the Bitcoin market, the company executed a major business shift and is now primarily engaged as a Bitcoin-focused treasury company. While specific figures for capital and total workforce are not disclosed, the company currently operates with 17 employees.

The company’s representative, Simon Gerovich, possesses specialized expertise in Bitcoin and promotes innovative corporate strategies. Under his leadership, Metaplanet has become the largest publicly listed corporate holder of Bitcoin in Japan and is advancing initiatives aimed at long-term Bitcoin accumulation. The company has articulated a policy of establishing itself as a sustainable Bitcoin treasury enterprise in the future.

Metaplanet is located at 6-10-1 Roppongi, Minato-ku, Tokyo—within a major business hub offering excellent accessibility. This prime location is convenient for meetings and client engagements and contributes to the acquisition of potential new customers.

2. Business Activities and Structure

Metaplanet operates across three primary business segments.

First is the Bitcoin treasury business. In this segment, the company provides asset management and investment services to corporations that adopt Bitcoin as a reserve asset. A distinguishing feature of this business is its proactive investment strategy combined with educational initiatives that enhance awareness and understanding of the Bitcoin market among clients.

Second is the hotel business, centered on “Hotel Royal Oak Gotanda,” through which the company has entered the tourism industry. This segment is designed to serve as a stable revenue source by leveraging regional characteristics, offering diverse lodging experiences to both domestic and international travelers.

Third is a segment focused on businesses utilizing advanced technologies. In this area, the company develops new technology-driven services and pursues market expansion strategies, enabling Metaplanet to maintain competitiveness while striving for sustainable growth. Synergies across business segments are actively pursued, with collaboration among departments expected to create a more effective business model.

3. Major Subsidiaries and Affiliates

Metaplanet has several subsidiaries and affiliated companies, each serving specialized roles. Some may function in infrastructural capacities and potentially provide new Bitcoin-related businesses and services. However, detailed information regarding specific subsidiaries and affiliates has not been publicly disclosed, making verification difficult at this time.

In 2024, it is anticipated that challenges affecting the broader corporate group may arise, including instances such as a subsidiary entering bankruptcy proceedings. Going forward, business restructuring and the development of new management strategies are expected. Close monitoring of the company’s overall financial health is therefore necessary. Continued corporate evolution will require appropriate leadership and governance structures, alongside the pursuit of forward-looking growth strategies.

4. Organizational and Personnel Structure

Metaplanet’s organizational structure is designed for efficient and flexible operations. The management team brings diverse backgrounds, with Simon Gerovich leading the company through specialized expertise tailored to the needs of each business segment. Under his leadership, rapid decision-making is achieved, and members with varied professional expertise work collaboratively to advance operations.

Board members include Tyler Evans, Benjamin Tsai, and Bataru Eto, each of whom has extensive experience in the blockchain and financial industries. Their knowledge and networks play a crucial role in strengthening competitiveness within the rapidly expanding Bitcoin market and in executing the company’s management strategies.

With a lean and highly skilled team, internal communication is smooth, enabling close collaboration among employees. In an increasingly competitive environment, such a structure can serve as a driving force for continuous innovation and growth. The company is expected to continue leveraging the capabilities of its leadership and organizational flexibility to pursue sustainable growth.

5. Research & Development and Innovation

To further enhance its core Bitcoin treasury segment, Metaplanet has strengthened its research and development framework and introduced new technologies to reinforce competitiveness. In particular, the company utilizes AI technologies and data analytics to better understand customer needs and improve investment performance.

R&D efforts place strong emphasis on blockchain technology and the security of digital assets, with ongoing initiatives to maintain transparency and build customer trust. This technological approach is a critical element in securing future competitiveness.

Additionally, the company recognizes the importance of responding swiftly to industry trends and regulatory changes. To minimize the impact of regulatory shifts, it is revising business strategies and developing new business models. Progress in research and development is regarded as a key factor in achieving long-term sustainable growth and enhancing competitive advantage within the industry.

6. ESG and Sustainability Initiatives

Metaplanet is increasingly focused on corporate social responsibility and sustainability. Amid concerns regarding the environmental impact of Bitcoin mining and transactions—particularly in terms of energy consumption—the company has demonstrated a proactive commitment to addressing these issues. The adoption of mining practices powered by renewable energy is expected to contribute positively to corporate sustainability.

In future corporate activities, consideration of ESG (Environmental, Social, and Governance) factors will continue to be highly valued by investors. Transparent reporting and initiatives that contribute to local communities are likely to be expected. To meet investor expectations, Metaplanet must establish clear policies and actively communicate relevant information.

As part of its pursuit of sustainable growth, the company is expected to enhance transparency and clearly articulate its societal purpose. Looking ahead, corporate priorities are likely to extend beyond mere profit maximization toward coexistence with society.

7. Considerations for Investors

Metaplanet Inc., with its diversified business segments and robust management structure, offers numerous opportunities for investors. Its strong focus on Bitcoin enhances competitiveness within the rapidly growing digital asset market and expands growth potential. However, given the nature of its Bitcoin-centered operations, investment decisions must account for price volatility risks and regulatory uncertainties.

Investors are encouraged to consider long-term perspectives after fully understanding Metaplanet’s unique business model and market positioning. In particular, successful implementation of sustainability initiatives and innovation strategies may lead to improved profitability and enhanced corporate value in the future. If the company effectively executes its growth strategy in line with its stated vision, its investment value could increase further.

Metaplanet places emphasis on embracing challenges within a rapidly changing market environment and continues to pursue growth. Through its ongoing evolution, investors may be able to share in long-term benefits.

Amid the interaction of various dynamic factors, it remains important to closely monitor Metaplanet’s growth narrative. By leveraging synergies across its business segments and creating new value for the future, the company is expected to sustain its long-term growth trajectory.

Shareholder Returns

1. Basic Policy on Shareholder Returns

Metaplanet Inc. positions the return of profits to shareholders as a key pillar of its corporate strategy. Specifically, its basic policy is to provide long-term and stable dividends while enhancing profitability and strengthening its financial position. Dividends are determined by resolution at the General Meeting of Shareholders and, in principle, are paid once annually as a year-end dividend, although interim dividends may also be implemented depending on business performance. The company’s dividend policy emphasizes consideration for shareholders and flexible responses in accordance with management conditions.

However, due to recent changes in the business environment, the company decided not to pay a dividend for FY2024. This decision was made in order to effectively utilize retained earnings for future new business development and reflects a strategic shift in capital allocation. Taking into account past performance deterioration and market volatility, the company is expected to accelerate efforts to diversify revenue sources and reduce dependence on Bitcoin-related businesses.

Going forward, Metaplanet is expected to strengthen its shareholder return policy, including a review of its dividend policy. To rebuild trust with shareholders, concrete actions will be required. In other words, as the company advances its growth strategy, it is expected to lay the groundwork for the resumption of stable dividends.

2. Share Repurchase Initiatives and Their Significance

Metaplanet has actively pursued share repurchases as a measure to enhance shareholder value. In FY2024, the company acquired 95,013 shares for approximately ¥109,400 thousand. This share buyback program is positioned as one of the methods of returning value to shareholders. By reducing the number of outstanding shares, share repurchases are expected to naturally increase earnings per share and dividends per share.

In addition, share repurchases can help support the stock price when implemented in response to economic conditions and market trends. Of particular importance to Metaplanet is the stable management of assets in relation to Bitcoin’s value. By acquiring treasury shares, the company aims to strengthen market confidence and enhance its corporate appeal. With the anticipated launch of a Bitcoin income business in 2024, which monetizes option premiums, it is expected that funds allocated to share repurchases may further increase.

On the other hand, share repurchases also carry risks. Given the high volatility of the Bitcoin market, allocating capital to buybacks may limit flexibility and potentially result in missed investment opportunities. While bearing this in mind, shareholder return measures through share repurchases are likely to play an important role in supporting Metaplanet’s growth.

3. Evolution of Dividend Policy and Its Relationship with the Market Environment

Metaplanet’s dividend policy has been significantly influenced by economic conditions and business performance. In its early stages, the company paid dividends based on stable earnings. However, following its business model transformation, its approach to dividends changed. For example, the withdrawal from its former hotel-focused operations and the strategic shift toward Bitcoin led to challenging business conditions, resulting in the suspension of dividend payments.

In FY2024, signs of business recovery have emerged, and a review of the dividend policy is being called for. In the current management environment, fluctuations in the Bitcoin market directly affect corporate performance, increasing the importance of dividend policy decisions. Within this context, Metaplanet is expected to shift toward reinforcing shareholder returns while improving profitability and financial strength.

Economic fluctuations often serve as turning points for corporate dividend policies, and a company’s ability to respond flexibly is key to earning shareholder trust. Furthermore, if the dividend policy returns to stability, expectations for long-term growth strategies are likely to rise, strengthening trust between the company and its shareholders.

4. Approach to Investor Communication

Metaplanet places strong emphasis on communication with shareholders and values transparent disclosure. Through its investor relations (IR) activities, the company is expected to clearly articulate its policies and the rationale behind them. Consistently demonstrating its stance on shareholder returns is an important factor in enhancing corporate credibility and improving market evaluation.

Through dialogue with shareholders, the company must clarify expectations and promote understanding of its sustainable growth strategy. In particular, when making decisions regarding share repurchases or dividend policies, careful consideration of their impact on shareholders—and clear explanation of those outcomes—will contribute to building trust.

To maintain competitiveness in the market, ongoing communication with shareholders will be essential. Demonstrating a commitment to meeting shareholder expectations is expected to broaden and stabilize the shareholder base, thereby contributing to enhanced corporate value.

5. Medium- to Long-Term Outlook and Sustainable Shareholder Returns

Metaplanet is pursuing a strategy that integrates sustainable growth with a sense of stability. From the perspective that shareholder return measures contribute to long-term corporate growth, dividend policies and share repurchases are considered indispensable. If its Bitcoin-centered business strategy proves successful, the company may be able to secure stable earnings in the future.

For sustained long-term growth, strengthening profitability and financial resilience will be essential, enabling meaningful shareholder returns. Metaplanet is expected to pursue diversified expansion through new business initiatives and Bitcoin-related asset management while charting a clear path toward enhanced shareholder returns.

The realization of sustainable shareholder returns requires a strong relationship of trust between the company and its shareholders, which in turn serves as the foundation for accelerated growth. Investors are encouraged to take a long-term perspective while maintaining expectations for Metaplanet’s future outlook.

Metaplanet’s shareholder return policy continues to evolve alongside the growth of its Bitcoin-related businesses and is being developed flexibly and sustainably in line with its new management strategy. As shareholder returns are closely linked to future growth, it is important for investors to maintain a strategic perspective. The company remains committed to achieving shareholder returns and building a long-term relationship of trust with its investors.

Business Risks

1. Factors Causing Earnings Volatility

Metaplanet’s business performance is heavily dependent on trends in the Bitcoin market. By positioning its Bitcoin treasury business as its core operation, the company is significantly affected by fluctuations in Bitcoin prices. In FY2024, the company plans to hold 700 BTC. If Bitcoin prices surge, it may rapidly benefit from substantial gains; however, if prices decline, it would face considerable risk. Such a highly volatile market represents uncertainty for investors and may at times result in unexpected losses.

In addition, customer investment behavior and overall market confidence also influence performance. As the popularity of Bitcoin fluctuates, if customers lose interest in the asset, Metaplanet’s overall business results could be adversely affected. The company also operates a hotel business, which is likewise subject to economic conditions and tourism demand. For example, a decline in travel demand due to an economic downturn would directly reduce occupancy rates and revenue. Considering these various earnings volatility factors comprehensively, investors are required to make investment decisions with careful risk management in mind.

2. Industry-Specific Risks

The industry to which Metaplanet belongs carries inherent risks. In particular, the Bitcoin market remains relatively immature, with price volatility and regulatory uncertainty heightening business risks. Due to Bitcoin’s highly liquid nature and significant price swings, it represents a key risk factor for corporate performance. For instance, a sharp decline in Bitcoin prices could deteriorate the financial conditions of many Bitcoin-related companies, and Metaplanet would be no exception.

Changes in the regulatory environment also require careful attention. Since the treatment of Bitcoin differs by country, regulatory tightening could directly impact business operations. Furthermore, the competitive landscape is becoming increasingly intense, with new entrants and existing competitors expanding their presence. As the industry matures, consumer expectations rise, requiring companies to respond flexibly to change. By recognizing these risks in advance and implementing appropriate countermeasures, companies are expected to maintain their competitive advantage.

3. Financial and Management Risks

Metaplanet’s financial condition is essential to its business growth, yet it also contains inherent risks. In particular, the increase in interest-bearing debt resulting from large-scale investments in recent years is regarded as a financial risk. Higher debt levels increase interest payment burdens, and in the event of sudden market deterioration or price fluctuations, this could seriously affect corporate management. Additionally, valuation gains or losses related to Bitcoin holdings may create volatility in consolidated financial statements, contributing to financial instability.

From a management perspective, if the current leadership’s strategies are not executed as expected, there is a risk of losing shareholder confidence. A lack of flexible decision-making could lead to diminished competitiveness or even market withdrawal. Information security risks are also critical, as data breaches could negatively impact corporate reputation and compliance. Properly managing these financial and managerial risks, while maintaining transparent communication, is essential for achieving sustainable growth.

4. Regulatory and Compliance Risks

For companies dealing with Bitcoin, regulatory risk is unavoidable. The legal framework for crypto assets differs by country, and regulatory changes can directly impact business models. In Japan in particular, regulations are stringent and government oversight continues to intensify, requiring companies to maintain strict compliance. In the event of regulatory tightening, a fundamental review of the business model may be necessary, testing the company’s ability to respond swiftly.

Moreover, uncertainty regarding legal changes can itself be a destabilizing factor. For example, if Bitcoin were to be banned in a specific region, it would pose a major issue directly affecting corporate performance. Such developments could significantly impact customer acquisition and retention strategies. In light of these risks, companies must continuously gather up-to-date information and establish systems capable of responding flexibly to legal changes. Investors, too, should remain attentive to these developments.

5. Global Market and Competitive Risks

Because Metaplanet operates in both domestic and international markets, changes in the global economic environment and competitive landscape represent significant risk factors. Competition is intensifying, particularly in emerging markets, and price competition could compress profit margins. To secure a competitive advantage, continuous innovation in products and services is required. However, such innovation requires investment, and the ability to secure funding directly affects risk exposure.

International political and economic issues may also hinder corporate growth. For instance, trade conflicts or rising geopolitical risks could directly affect logistics and business operations. A prudent approach to analyzing and strategically responding to these risks remains essential. Investors should closely monitor how Metaplanet competes in the global market and how effectively it manages these risks.

Overall, Metaplanet faces a wide range of business risks, including earnings volatility factors, industry-specific risks, and financial risks. It is essential to understand these risks and implement appropriate risk management measures. This requires flexible strategies and a strong grasp of market trends. By recognizing these risks while pursuing sustainable growth, the company can provide investors with a sound basis for informed investment decisions.