Simon Gerovich, the CEO of Metaplanet, has reaffirmed the company’s commitment to its bitcoin acquisition strategy, despite facing significant challenges in the cryptocurrency market. In a recent communication on X, Gerovich stated that Metaplanet will maintain its course of accumulating bitcoin, expanding revenue, and preparing for its next growth phase. He expressed gratitude to shareholders who have continued to support the company throughout the ongoing downturn in bitcoin prices.
The largest cryptocurrency has seen a staggering decline, losing over 47% of its value since reaching an all-time high in October. The situation worsened on Thursday, when bitcoin dropped 14%, contributing to a challenging environment for Metaplanet’s stocks. Shares in the Tokyo-based company have plummeted approximately 82% from a peak of 1,930 yen in June, closing the week at 340 yen ($2.16). Following the recent downturn in bitcoin prices, Metaplanet’s stock fell an additional 5.6% after Asian trading hours on Friday.
Metaplanet’s ambitious “555 Million Plan” sets out a target to acquire 100,000 bitcoins by the end of 2026, with a further aim of reaching 210,000 bitcoins by 2027. The company’s bitcoin holdings have seen substantial growth, increasing from 1,762 BTC at the end of 2024 to a current total of 35,102 BTC. The current value of this holding stands at approximately $2.5 billion, reflecting both the volatility of the cryptocurrency market and the strategic decisions taken by the company.
However, Metaplanet’s investments have plunged into the red, with an average acquisition cost looming around $107,000 per bitcoin, compared to the current market price of about $66,270. Additionally, the company is grappling with roughly $280 million in outstanding debt, further complicating its financial outlook.
Globally, Metaplanet ranks as the fourth-largest publicly traded holder of bitcoin, trailing behind Strategy Inc. (MSTR), which holds 713,502 BTC, followed by MARA Holdings (MARA) with 53,250 BTC and Twenty One Capital (XX1), holding 43,514 BTC, as reported by bitcointreasuries.net.
Earlier this year, Metaplanet revealed plans to raise up to 21 billion yen to finance additional bitcoin purchases and reduce debt. This funding strategy aims to involve the sale of 24.53 million new common shares at 499 yen each, along with stock warrants intended for select investors. As the company navigates through the fluctuating landscape of cryptocurrency, Gerovich’s continued confidence in their strategy reflects a long-term vision amid short-term challenges.
