Metaplanet’s quarterly Bitcoin valuation gains dropped sharply as the aftermath of October’s crypto market crash continues to weigh on corporate Bitcoin treasuries.
Japanese investment company Metaplanet recorded 10.6 billion yen or $1.4 billion in Bitcoin (BTC) valuation gains during the third quarter of the year, down 39% from the 17.4 billion yuan ($2.4 billion) it posted in the previous quarter, according to earnings figures the company shared Thursday on X.
“The Company’s Bitcoin Treasury Business continues to progress steadily in line with plan and is not dependent on short-term price fluctuations,” Metaplanet said.
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The company also reported a stock amortization cost of $26 million for the third quarter, which refers to the total costs associated with issuing new shares during this period.
The stock amortization cost is often used as a gauge of the cost of raising capital for a company.
Metaplanet, also known as “Asia’s Strategy,” aims to acquire 210,000 Bitcoin by the end of 2027, through equity financing opportunities.
Related: Bitcoin ETFs roar back with $524M inflows in best day since market crash
Crypto market crash pressures Metaplanet, corporate Bitcoin holders
Corporate crypto holders and Bitcoin treasuries are still feeling the pressure in the aftermath of the record $19 billion crypto market crash on Oct. 10.
Metaplanet’s Bitcoin holdings have been in the red since the market crash, as the investment firm acquired its Bitcoin holdings at an average cost of $108,000 per coin, nearly 5% below the current BTC price of $103,000.
“The company owns 30,823 bitcoins at an average acquisition cost of $108k/BTC. The giant position is now 5% underwater,” wrote macro analyst Kashyap Sriram in an X post on Nov. 6.
The analyst also criticized Metaplanet’s recent $100 million Bitcoin-backed loan, which it raised to buy more BTC in an effort to lower their total cost basis. The investment firm secured the $100 million loan on Oct. 31 using its Bitcoin holdings as collateral.
Metaplanet’s stock price fell over 27% during the past month and over 6.5% during the past five days, according to Yahoo Finance data.
The company’s stock price was also pressured by reports that Japan Exchange Group (JPX) was exploring new restrictions on publicly listed cryptocurrency holding firms, Cointelegraph reported on Thursday.
However, Metaplanet’s CEO, Simon Gerovich, said that JPX’s concerns only apply to companies with poor approval processes that have potentially sidestepped proper governance or disclosure rules.
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