Tokyo-listed Metaplanet has announced a significant expansion into the U.S. market through its new Miami-based subsidiary. This initiative, aimed at enhancing the company’s income-generating activities, will be established with an initial capital of $15 million, according to a recent press release.
Currently holding a portfolio valued at approximately $2.3 billion in Bitcoin, Metaplanet is positioning its U.S. operations to focus on managing and growing these income streams. The new entity, known as Metaplanet Income Corp., is expected to allow the parent company to pursue derivatives operations and related revenue-generating activities more effectively.
Despite the positive news, Metaplanet’s share price has seen a considerable decline. On a recent trading day, shares were trading at roughly $4.06, reflecting a drop of nearly 4%. Over the last three months, the stock has fallen about 68% from its previous value of $12.90, although it has still managed to gain 74% year-to-date.
Founded in 1999, Metaplanet has built a reputation in managing budget hotels throughout Japan, including niche markets such as “love hotels.” However, the latest announcement does not reference its traditional hospitality business. Instead, the firm emphasized that the new subsidiary will operate independently from its treasury operations.
In its recent financial disclosures, Metaplanet reported an operating profit of ¥817 million (approximately $5.5 million) for the second quarter, achieved on total sales of ¥1.23 billion (about $8.4 million). The surge in revenue was largely attributed to the company’s activities in income generation, which saw profits of approximately ¥1.13 billion ($7.7 million) from selling Bitcoin put options. Notably, these derivatives become profitable for buyers when Bitcoin’s market value drops below a designated strike price.
Metaplanet President Simon Gerovich commented on social media that this derivatives business has evolved into a crucial engine of growth for the company, consistently generating both revenue and net income. In conjunction with this expansion, Gerovich confirmed that Metaplanet has successfully closed a substantial public offering worth $1.45 billion, involving the issuance of approximately 385 million shares. The offering attracted over 70 investors, including some of the largest mutual funds, sovereign wealth funds, and hedge funds, during an extensive roadshow.
As Metaplanet moves forward with its U.S. expansion and develops its income-generation strategies, stakeholders will be closely monitoring its performance, particularly in the volatile cryptocurrency market.
