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Metaplanet shifts to new financing as yen hit its Bitcoin balance sheet
The firm reported a ¥182.77 billion net loss for the first half of the year, driven largely by a ¥184.30 billion valuation loss tied to yen-denominated Bitcoin declines.
Metaplanet moved more than 5,000 Bitcoin in custody this week, a transfer worth about $322 million that sparked speculation it could be liquidating part of its holdings. On Aug. 12, CEO Simon Gerovich said the move was routine, with no Bitcoin sold and total holdings remaining unchanged at 43,000 BTC, CryptoSlate reported.
Even with the physical reserves unchanged, newly released disclosures show a major shift underneath the companys Bitcoin-heavy balance sheet. For the six months ended June 30, Metaplanet recorded a ¥182.77 billion net loss, with the result driven almost entirely by a ¥184.30 billion valuation loss tied to the declining yen value of its treasury, even as it generated ¥3.33 billion in operating profit and ¥4.94 billion in revenue.
The filings also describe why sustaining its Bitcoin purchasing momentum has become more complex. Metaplanet said its mNAV, a metric it uses to track enterprise value against the market value of its Bitcoin holdings, hovered around 1.0 and stayed below that level much of the period, and its capital allocation policy generally avoids issuing common stock when mNAV drops below 1.0.
With third-party common share allotments raised earlier in the year, the company said that avenue effectively closed once the multiple weakened, leading to no common share issuances during the second quarter. Instead, Metaplanet continued buying Bitcoin using a mix that includes an ¥8 billion zero-interest ordinary bond, borrowing under a credit facility, proceeds from previously issued stock acquisition rights, and revenue from options income, according to CryptoSlate.
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