Metaplanet Faces Massive Unrealized Bitcoin Losses Amid Market Downturn

The X post from Cointelegraph highlights a stark warning from Galaxy Research about Bitcoin treasury companies entering a "Darwinian phase." The attached chart focuses on Metaplanet (a Tokyo-listed Japanese firm, ticker 3350.T), showing its unrealized profit and loss (PnL) on Bitcoin holdings swinging deeply negative.

What the Chart Shows

• Source — Galaxy Research (data via Metaplanet dashboard).
• Timeframe — Roughly April to November 2025.
• Peak — Unrealized gains reached ~$695 million (mid-2025 bull run).
• Current (as of ~Dec 1, 2025) — Unrealized losses of approximately -$534 million, with interim lows around -$540 million.
• The line chart depicts a classic boom-bust: steady growth to highs around June/July, followed by a sharp collapse as Bitcoin's price momentum faded.

This visualization underscores how quickly fortunes reversed for aggressive Bitcoin accumulators.

Metaplanet's Bitcoin Strategy: The "Asia's MicroStrategy"

Metaplanet, originally a hotel and Web3-focused company, pivoted aggressively to a Bitcoin treasury model in 2024, inspired by MicroStrategy. Often dubbed "Japan's MicroStrategy," it views Bitcoin as a hedge against yen depreciation, inflation, and Japan's debt issues.

• Holdings → As of late 2025, Metaplanet holds approximately 30,823 BTC (no major updates post-September/October purchases reported).
• Average Cost → Over $107,000–$108,000 per BTC, due to heavy buying during 2025 peaks.
• Total Value → Current holdings worth ~$2.8–$3.3 billion (depending on BTC spot price, recently around $80,000–$92,000).
• Funding Approach → Raised capital via stock issuance, low-interest loans, and a $500 million Bitcoin-backed credit facility (drawn ~$280 million+ by December). Proceeds fueled BTC buys and options trading for yield.
• Ambition → Long-term goal: 210,000 BTC by 2027 (1% of total supply).

The strategy created a "flywheel": Shares traded at premiums to net asset value (NAV), allowing cheap equity raises to buy more BTC, boosting holdings per share and yield (e.g., 496% YTD at points).

The Broader Context: Galaxy Research's "Darwinian Phase"

Galaxy's December 2025 report ("DAT’s All, Folks? The Bitcoin Treasury Trade Hits Its Limit") declares the end of the easy phase for Digital Asset Treasury (DAT) companies like Metaplanet, MicroStrategy, Semler Scientific, and Nakamoto.

Key points from the report:

• Premium Collapse — Stocks once traded at 200–400% premiums to BTC NAV; now many at discounts.
• Leverage Backfire — High-beta exposure amplified upside in bull markets but magnifies downside (e.g., stocks fell harder than BTC's ~30% drop from highs).
• Unrealized Losses — Firms with high average costs (like Metaplanet's >$107K) are underwater as BTC trades lower.
• Survival Mode — Issuance "flywheel" reversed; potential forced selling if premiums stay negative. Galaxy calls it a shakeout: weak structures fail, strong ones survive.

Other firms hit hard: Nakamoto (NAKA) down >98% from peak.

Why This Matters Now (December 2025)

Bitcoin's pullback from 2025 highs (~$126,000) exposed vulnerabilities in leveraged treasury models. Metaplanet remains committed—recently raising/borrowing more despite losses—but the chart signals caution. Long-term Bitcoin bulls see this as a healthy purge; skeptics warn of dilution or liquidation risks.

Metaplanet's transparency (public dashboards, proof-of-reserves) sets it apart, but its high average cost makes recovery dependent on BTC rebounding above $110,000+.

For the full Galaxy report and updates, check their site or Metaplanet's analytics dashboard. This episode highlights the high-risk, high-reward nature of corporate Bitcoin adoption in volatile markets.