Metaplanet Stock Down 15.8% Despite 860% Bitcoin Gain

Metaplanet CEO Simon Gerovich has reaffirmed the company’s commitment to its 10,000 BTC goal, emphasizing the importance of long-term value creation over short-term stock price fluctuations. Despite recent declines in Metaplanet’s stock price, the company’s Bitcoin holdings and per-share yield have surged, positioning it as Asia’s largest public BTC holder.

In a message posted on X, Gerovich addressed concerns from shareholders about the company’s declining stock price. He expressed gratitude for their continued support and reiterated the firm’s commitment to building lasting corporate value. Metaplanet’s stock, listed in Tokyo, has fallen 15.8% over the past month and is down 7.6% year-to-date. However, the company’s stock remains up over 860% since it first launched its Bitcoin treasury strategy in April 2024.

Gerovich highlighted that short-term fluctuations in stock price do not necessarily reflect the company’s performance. He emphasized that Metaplanet is executing a clear strategy as a Bitcoin treasury company, aiming to become one of the most valuable companies in the world. Last week, Metaplanet announced the purchase of 330 BTC, worth around $28 million, bringing its total holdings to 4,855 BTC. The firm remains on track to meet its goal of acquiring 10,000 BTC by the end of the year, despite broader market uncertainties and macroeconomic pressures.

At current market value, Metaplanet’s BTC holdings are worth approximately $430 million, making it the largest corporate Bitcoin holder in Asia and the tenth largest globally. Gerovich noted that the company’s growth is not only in assets but also in investor interest, with a sevenfold increase in shareholders. This growth is attributed to increasing institutional interest and inclusion in ETFs and indexes.

Metaplanet evaluates its performance using a metric called BTC Yield, which measures the change in the ratio of total Bitcoin held to fully diluted shares outstanding. Year-to-date, the firm’s BTC Yield stands at 119.3%, well above its quarterly target of 35%. The company also tracks BTC Gain, a measure of value generated through financial strategies beyond spot purchases. In one example, Metaplanet used cash-secured put options to acquire $67.9 million worth of Bitcoin with only $62.7 million in capital, generating an additional 2,174 BTC through such methods.

Gerovich emphasized that these results are not future hopes but achievements that have already been realized. As a major shareholder, he is closely aligned with the interests of other investors and prioritizes shareholder interests in all his decisions. The goal is to maximize the value of shares and the amount of Bitcoin held per share, creating long-term value. While acknowledging that current market sentiment may not reflect the company’s fundamentals, Gerovich remains confident that stock prices will converge to fundamentals over the medium to long term. He concluded by saying, “We’re just getting started.”