Bitcoin Treasury Firm Metaplanet Reports $170M Deficit Following Cryptocurrency Liquidation
The Bitcoin treasury firm Metaplanet disclosed deteriorating financial conditions in its third-quarter earnings, grappling with escalating interest costs, declining cryptocurrency valuations and expulsion from MSCI index listings.
In the opening nine months of 2026, Metaplanet recorded a $170 million net deficit, impacted by depreciation in its Bitcoin portfolio value and losses incurred from liquidating 10,000 coins as a demonstration of its capacity to generate liquidity.
The Japan-based corporation, ranking as the globe's second-biggest publicly listed corporate holder of Bitcoin (BTC), reported a net deficit of 27.16 billion yen (approximately $170 million), a stark contrast to the 13.53 billion yen ($84.6 million) profit recorded during the equivalent timeframe in the prior year. The financial results were weighed down by a 19.17 billion yen ($119.8 million) deficit from the Bitcoin liquidation and an 8.04 billion yen ($50.3 million) impairment stemming from the depreciation of its Bitcoin portfolio, which overshadowed positive performance in its core operating activities.
Throughout the quarter, Metaplanet liquidated the 10,000 BTC for 124.7 billion yen and briefly maintained the funds in cash, stablecoins and additional liquid instruments. Subsequently, it deployed 149.9 billion yen to acquire 11,000 BTC, paying an average premium of 9.3% more per coin. The corporation indicated the liquidation was designed to demonstrate to credit rating agencies and bondholders that it possessed the capability to convert its Bitcoin assets into cash to satisfy financing requirements. By the conclusion of September, the company's holdings had grown by a net increase of 1,000 coins to reach 44,000 BTC.
During the quarter, Metaplanet utilized its Bitcoin portfolio as collateral for borrowing, escalating the outstanding balance on its credit facility to $649.5 million by the end of September, up from $414 million at the conclusion of June.
The corporation disclosed that it financed Bitcoin acquisitions from the second quarter forward using capital borrowed through the credit facility, funds obtained from bond issuances and the execution of stock acquisition rights, along with income generated from its Bitcoin options trading operations.
Interest expenses at Metaplanet climbed 56% compared to the preceding quarter, reaching 1.36 billion yen ($8.5 million). The combined total of short-term debt and bonds payable stood at 110.5 billion yen ($691 million) as of the end of September.
During the nine-month period ending in September, revenue increased 30.5% to reach 5.9 billion yen ($36.9 million), while operational profit grew 26.5% to 3.48 billion yen ($21.8 million). The corporation reduced its full-year revenue projection to 6.5 billion yen ($40.6 million) from the previous forecast of 16 billion yen ($100 million).
Cryptocurrency treasury corporations encounter challenges from declining valuations, index exclusions
The earnings report from Metaplanet arrives as Bitcoin treasury corporations confront intensifying challenges from forthcoming equity index exclusions and deteriorating Bitcoin market prices.
On Wednesday, index provider MSCI validated that Strategy, Metaplanet and Upexi would be excluded from its equity index listings at the close of trading on Nov. 30, potentially triggering share liquidations by funds that replicate these benchmarks. JPMorgan had previously projected that Strategy's exclusion might generate approximately $2.8 billion in liquidation pressure from investment vehicles linked to MSCI indexes.
Bitcoin dropped beneath the $70,000 threshold on Friday and was changing hands near $68,600 at 4:51 p.m. UTC, representing approximately a 9% decrease across the preceding seven-day period, based on data from CoinGecko.