Metaplanet increases its Bitcoin holdings to 35,102, posing a risk to shareholders?

Metaplanet unexpectedly resumed buying Bitcoin on a massive scale: 4,279 BTC in a single transaction, raising its total holdings to 35,102 BTC and solidifying its position among the world's largest publicly traded companies in Bitcoin ownership.

This move comes even as Bitcoin is trading below Metaplanet's average Capital , drawing market attention to how the company uses Capital and debt to accumulate capital, and the sensitivity of its balance sheet to crypto price fluctuations.

Metaplanet resumes Bitcoin accumulation and surprises with its scale.

Metaplanet announced the purchase of 4,279 BTC on December 30th, worth 69.855 billion yen, thereby increasing its total holdings to 35,102 BTC and continuing to be among the largest publicly traded companies owning Bitcoin.

After a period of pause, Metaplanet remains ranked fourth among publicly traded companies operating Bitcoin "treasury" globally. This return is noteworthy because it comes as Bitcoin is trading below the company's average purchase price, meaning short-term price volatility could significantly impact the valuation of crypto assets on its balance sheet.

From a market perspective, a large purchase typically signals "long-term confidence," but simultaneously raises questions about Capital sources, cost of Capital , and drawdown tolerance. Given that many companies use Bitcoin as a reserve asset, the size of the purchase and the debt/equity structure directly determine the level of risk shareholders bear.

Metaplanet is financing Bitcoin purchases using equity and BTC backed debt.

Metaplanet stated that it used Bitcoin-backed equity issuance and credit lines to finance its BTC purchases.

The company stated that the Bitcoin purchase was Capital through Capital issuance and credit facilities secured by Bitcoin, as detailed in the announcement in Metaplanet's X post .

In Q4 2025, Metaplanet took out loans secured by Bitcoin totaling $280 million. These lines of credit have been fully disbursed, but outstanding debt remains as of December 29th. This means that in addition to Bitcoin price risk, the company also faces debt obligation risk and service costs.

In addition to debt, Metaplanet raised 21.249 trillion yen through the issuance of 23.61 million Class B preferred shares. These shares are fully reflected in the dilution amount, meaning the dilution increases in parallel with the level of exposure to Bitcoin at the shareholder level.

Metaplanet's balance sheet is becoming more sensitive to Bitcoin price fluctuations.

As Bitcoin became a central asset, Metaplanet's balance sheet risk increased sharply with BTC price fluctuations, especially when the market price fell below the average Capital .

As of December 30th, Metaplanet's average Bitcoin purchase price was 15,945,691 yen/ BTC. When BTC trades below this level, the company faces over $500 million in unrealized losses. This loss figure could fluctuate with Bitcoin's price and wouldn't become a real loss if no sale is made, but it still significantly impacts risk perception and financial health.

Management emphasizes BTC Yield and BTC Gain as measures of cumulative performance. However, it is stated that these metrics do not include debt obligations and unrealized losses at fair value. Therefore, while they may reflect “cumulative performance,” they do not fully represent the overall risk of the balance sheet.

Are shareholders facing additional downside risk from dilution and leverage?

A strategy of accumulating BTC can increase Bitcoin exposure per share, but it also exposes shareholders to greater risk if the price of BTC experiences a prolonged decline due to dilution and leverage.

Metaplanet describes the strategy as value-adding, but both share dilution and leverage continue to increase. After the issuance and conversion, the number of outstanding shares on a fully diluted basis reached 1.459 billion, directly altering the “Bitcoin per share” and sensitivity to price fluctuations.

Although BTC yield remains positive, management acknowledges that these metrics have limitations in reflecting balance sheet risk. Factors such as debt service costs, Capital risk, and crypto market volatility can significantly impact shareholder outcomes, especially if Bitcoin fails to recover above its average Capital for a sufficiently long period.

Conclude

Metaplanet's renewed strong buying of Bitcoin reflects long-term confidence, but also increases risks from price volatility, debt, and dilution. In the short and medium term, shareholder outcomes will depend heavily on whether Bitcoin can recover above its average Capital of 15,945,691 yen/ BTC , as well as the ability to manage debt and liquidation risks amidst crypto market volatility.

Frequently Asked Questions

How much Bitcoin did Metaplanet buy in its latest purchase?

On December 30th, Metaplanet announced the purchase of 4,279 BTC, worth 69.855 billion yen, bringing its total Bitcoin holdings to 35,102 BTC.

What source of Capital does Metaplanet use to buy Bitcoin?

The company said it is financing the Bitcoin purchase through Capital issuance and Bitcoin-backed credit facilities, including loans totaling $280 million in the fourth quarter of 2025.

What is the average cost of Capital sold for a Metaplanet, and what does that mean?

As of December 30th, the average purchase price was 15,945,691 yen/ BTC. If Bitcoin trades below this level, the company records unrealized losses and its balance sheet becomes more sensitive to price drops.

Why should shareholders be concerned about dilution and leverage?

Issuing shares increases the number of diluted shares, while borrowing against BTC increases debt obligations. When the price of Bitcoin fluctuates, these two factors can amplify the positive or negative impact on the value shareholders receive.