Metaplanet’s High-Stakes Bitcoin Gamble Backfires

The aggressive cryptocurrency strategy adopted by Japanese investment firm Metaplanet has triggered a severe downturn in its share price. As digital asset markets experience a substantial correction, the company finds itself grappling with significant financial strain from its substantial Bitcoin holdings.

Metaplanet’s shares have entered a steep decline following Bitcoin’s retreat from the $100,000 threshold. The company’s extensive cryptocurrency reserves have accumulated approximately $120 million in unrealized losses, creating substantial pressure on its market valuation. The stock currently trades approximately 80% below its record peak, with its market capitalization having briefly fallen below the value of its Bitcoin reserves during October.

The company’s crypto treasury model, which involves holding Bitcoin Read more...