Metaplanet Shares Defy Record Earnings with Steep Decline

Despite posting extraordinary financial results for the third quarter of 2025, Metaplanet's stock continues to experience a dramatic downturn. The company reported earnings per share of 10.68 yen alongside revenue of 2.4 billion yen, surpassing expectations by a remarkable 173%. Nevertheless, the equity has been shedding value for months amid regulatory concerns from Japan's financial authorities.

The primary driver behind the share price collapse appears to be potential regulatory changes from Japan's exchange watchdog. The Japan Exchange Group (JPX) is currently evaluating stricter rules for publicly-traded companies with cryptocurrency strategies. This regulatory uncertainty has triggered a massive sell-off, with Metaplanet shares losing more than 75% of their value since reaching a peak of 1,930 yen in June. Market observers note that at least three Japanese firms have already abandoned their Bitcoin-related initiatives since September.

The securities regulator is reportedly developing enhanced regulations targeting backdoor listings and implementing additional auditing requirements for corporations maintaining substantial digital asset holdings. These potential restrictions have created significant headwinds for Metaplanet's business model, despite its strong operational performance.

Bitcoin Treasury Generates Billions

Metaplanet's strategic pivot toward Bitcoin continues to yield substantial financial benefits. The company's holdings of 30,823 Bitcoin generated approximately 10.6 billion yen in profit during the last quarter alone. This positions Metaplanet among the world's six largest corporate holders of the cryptocurrency.

Should investors sell immediately? Or is it worth buying Metaplanet?

The company's expansion strategy remains active with the September establishment of two new subsidiaries: Bitcoin Japan Inc. in Tokyo and Metaplanet Income Corp. in Miami. Additionally, the corporation secured the domain bitcoin.jp, strengthening its footprint within Japan's cryptocurrency ecosystem.

Ambitious Targets Amid Market Uncertainty

Undeterred by regulatory challenges, Metaplanet maintains ambitious long-term objectives. The company aims to accumulate 210,000 Bitcoin by 2027, representing approximately 1% of the total supply. This $20 billion target leverages Japan's substantial private wealth, estimated at $14.9 trillion.

In October, Metaplanet initiated a share buyback program covering 150 million shares while securing a credit facility worth $500 million. The market will closely watch the next quarterly results scheduled for February 17, 2026, to determine whether the company can sustain its growth trajectory or if regulatory concerns will continue to pressure the stock price.