Metaplanet Third Quarter Financial Results

Metaplanet's top-line financial metrics for the first nine months of FY2025 provide a clear, quantitative summary of the company's extraordinary year-over-year growth. These results reflect the successful and aggressive execution of Metaplanet's strategic pivot towards becoming a premier Bitcoin treasury company, marking a fundamental transformation from the prior fiscal year.

The results represent a monumental shift in corporate performance. Metaplanet has reversed significant prior-year losses across all key profitability metrics, posting substantial profits in Q3 FY2025. This reversal from significant prior-year losses is directly attributable to the strategic focus on the Bitcoin-related business, which has not only generated new revenue streams but also produced significant non-operating gains. This remarkable financial performance is the direct result of a bold corporate strategy grounded in a specific view of the global economic landscape.

Strategic Narrative and Business Environment

To fully appreciate Metaplanet's performance, it is essential to understand the core philosophy and the global economic context that underpin its strategy. Management perceives a structural transformation in the global economy, coupled with a monetary system approaching a turning point due to geopolitical risk and concerns over sovereign debt. This has led to capital outflows from traditional "safe assets" like long-term government bonds.

Against this backdrop, Metaplanet views Bitcoin as an asset of paramount strategic importance due to its absolute scarcity, ease of global transfer, and independence from credit-based intermediaries. This conviction is the foundation of the company's core strategic mission: "To prudently and rapidly accumulate as much Bitcoin as possible on behalf of our shareholders." As the second public company globally to adopt a full Bitcoin standard, Metaplanet has positioned itself as a leader in this paradigm shift. The success of this strategy is measured by a unique set of key performance indicators designed to track value creation for shareholders.

Analysis of Key Performance Indicators

This section deconstructs the primary metrics that Metaplanet utilizes to measure value creation for its shareholders within its Bitcoin-centric model. These KPIs are designed to provide a transparent view of the company's effectiveness in accumulating Bitcoin on a per-share basis, net of any shareholder dilution from capital-raising activities.

• BTC Yield: "BTC Yield refers to the growth rate of Bitcoin holdings per share...BTC Yield measures the growth rate of Bitcoin holdings per fully diluted share and is one of the Company’s most important management KPIs as a Bitcoin treasury-focused enterprise." The BTC Yield for the third quarter was 33.0%.
• BTC Gain: "BTC Gain indicates the absolute increase in Bitcoin holdings on a fully diluted basis...It is calculated by multiplying the prior period’s total Bitcoin holdings by the BTC Yield." The BTC Gain for the third quarter was 4,412 BTC.
• BTC ¥ Gain: "BTC ¥ Gain is calculated by multiplying BTC Gain by the yen-denominated spot price of Bitcoin at that time." The BTC ¥ Gain for the third quarter was ¥74,158 million.

The following table summarizes the quarterly progression of these metrics, illustrating the accelerating pace of Bitcoin accumulation throughout FY2025.

The data shows that the pace of BTC accumulation accelerated significantly through 2025, driven by aggressive capital-raising initiatives including the exercise of warrants issued in June 2025 and a successful overseas offering of 385 million shares in September. While the absolute BTC holdings grew by a remarkable 17,473 BTC in Q3, the BTC Yield of 33.0% was lower than in Q2 (129.4%). This reflects the trade-off inherent in the accumulation strategy; the massive capital raise required a significant increase in the denominator of the calculation (Fully Diluted Shares Outstanding), which grew by over 73% in Q3 alone, thereby compressing the per-share yield for the quarter. The success of these initiatives hinges on a sophisticated and adaptable capital structure.

Capital Structure and Strategic Evolution

A central component of Metaplanet's strategy is aligning its capital structure with its long-duration asset, Bitcoin, and adapting its fundraising approach to prevailing market conditions. This has led to several key strategic shifts and corporate actions during the period.

Shift to Preferred Shares and "Digital Credit"

Recognizing that common equity issuance becomes less efficient when the company's mNAV (Enterprise Value / Bitcoin NAV) approaches 1.0x, Metaplanet has announced a strategic shift to prioritize perpetual preferred stock as a primary financing instrument. This aligns a perpetual capital source with a perpetual-duration asset.

The proposed "Metaplanet Prefs" are designed as non-maturing instruments that carry debt-like features (fixed dividends) without refinancing risk. Their key objectives are to enhance BTC Yield, amplify balance sheet leverage to capture Bitcoin's upside, and provide durable capital.

This initiative is part of a broader vision to pioneer "Digital Credit"—a new class of Bitcoin-backed fixed income. Management draws an analogy to the transformative impact of high-yield credit in the 1980s and mortgage-backed securities in the 1970s, positioning Digital Credit as the next major financial innovation.

"PHASE II: Bitcoin Platform" Initiative

Announced on October 1, 2025, the "PHASE II: Bitcoin Platform" is a new strategic initiative designed to support the issuance of preferred shares. Its primary goal is to strengthen cash flow generation from Bitcoin-related businesses. This will help secure a stable source of funds to service dividend payments to future preferred shareholders, thereby making the instrument more attractive to fixed-income investors.

Corporate and Accounting Changes

Several significant corporate and accounting changes were implemented during the period to support the company's new strategic direction:

• Stock Split: A 10-for-1 stock split became effective on April 1, 2025.
• Reporting Unit: The financial reporting unit was changed from thousands of yen to millions of yen.
• New Subsidiaries: Four new consolidated subsidiaries were established: Metaplanet Holdings Inc., Metaplanet Treasury Corporation, Metaplanet Income Corp., and Bitcoin Japan Co., Ltd.
• Segment Name Change: The segment formerly known as "Bitcoin Treasury Business" was renamed to "Bitcoin-related Business."

These strategic actions have had a direct and profound impact on the company's consolidated financial statements.

Analysis of Consolidated Financial Position

This section dissects the major changes in Metaplanet's consolidated balance sheet as of September 30, 2025, compared to the end of the prior fiscal year on December 31, 2024. The transformation of the company's financial position is stark and reflects the intense capital-raising and asset accumulation activities of the period.

Asset Composition Analysis

Total Assets increased by an astounding ¥520.418 billion during the first nine months of FY2025. This growth was driven by increases in both current and non-current assets.

• Current Assets grew by ¥21.273 billion, primarily due to a ¥1.193 billion increase in cash and the recognition of ¥20.940 billion in Bitcoin held for trading purposes.
• Non-Current Assets grew by ¥496.765 billion. This was overwhelmingly driven by the ¥495.420 billion increase in Bitcoin held as a long-term treasury asset.

The distinction in Bitcoin classification is critical: the Bitcoin held as a current asset was acquired for trading purposes related to the income generation strategy, while the holdings under non-current assets represent the company's core long-term treasury reserves.

Liabilities and Net Assets Analysis

Total Liabilities increased by a modest ¥4.477 billion. This was the net result of a ¥6.750 billion decrease in the current portion of bonds payable, offset by a significant ¥9.973 billion increase in deferred tax liabilities related to the unrealized gains on Bitcoin holdings.

The most dramatic change occurred in Net Assets, which surged by ¥515.941 billion. This massive increase was driven by two primary factors:

1. The recording of ¥13.528 billion in net income.
2. Substantial increases in Capital Stock (¥247.462 billion) and Capital Surplus (¥247.701 billion). These increases are the direct balance sheet impact of the capital-raising initiatives detailed previously, namely the aggressive exercise of stock acquisition rights and a major overseas offering to fund Bitcoin purchases.

In summary, the balance sheet transformation clearly reflects the successful execution of the company's capital-raising and Bitcoin acquisition strategy, resulting in a significantly larger and financially stronger entity.

Review of Consolidated Income Statement

This section reviews the components of the consolidated income statement for the nine months ended September 30, 2025. The results highlight the emergence of new revenue streams and the profound impact of non-operating items on the company's overall profitability.

Revenue and Operating Income Analysis

The company's evolved business model is reflected in a new revenue categorization under the "Bitcoin-related Business" segment. For the nine-month period, revenue components were as follows:

• Option Premiums from Bitcoin Derivatives: ¥4,404 million
• Valuation Gains/Losses on Bitcoin (Current Assets): ¥121 million
• Other Bitcoin-related Revenue: ¥13 million
• Valuation Gains/Losses on Bitcoin Derivatives: (¥325) million

Combined with stable "Hotel Revenue" of ¥303 million, these items contributed to total revenue of ¥4,517 million. These new revenue streams, combined with effective cost management, resulted in an operating profit of ¥2,748 million, a stark reversal from the operating loss of ¥183 million recorded in the same period of the prior year.

Non-Operating Items and Net Income

The most significant driver of profitability during the period came from non-operating items. Specifically, the company recorded a Gain on Bitcoin Valuation of ¥20,644 million due to the appreciation of its long-term holdings. This single item was the primary contributor to the ordinary profit of ¥23,229 million. Non-operating expenses included ¥190 million for the amortization of stock issuance costs.

After accounting for total income taxes of ¥9,700 million (largely related to deferred taxes on unrealized gains), the company achieved a Net Income Attributable to Owners of Parent of ¥13,528 million.

Significant Subsequent Events (Post-Q3)

Several material events occurred after the September 30, 2025, reporting date. These events have important implications for the company's capital structure and ongoing strategy.

1. Partial Early Bond Redemption: On October 6, 2025, the company executed a partial early redemption of its 19th Series of Ordinary Bonds, repurchasing ¥750 million of the outstanding amount.
2. Share Repurchase Program: The Board of Directors approved a share repurchase program on October 28, 2025. The program authorizes the repurchase of up to 150 million common shares for a total amount of approximately ¥75 billion. The stated strategic rationale is to maximize BTC Yield and improve capital efficiency, particularly during periods when the company's mNAV is below 1.0x.
3. New Credit Facility: A new credit facility with a maximum capacity of USD 500 million was established. On October 31, 2025, the company executed its first borrowing under this facility, drawing down USD 100 million using its Bitcoin holdings as collateral. The funds provide flexible capital for additional Bitcoin acquisitions, business investments, or share repurchases.

These post-quarter actions demonstrate a continued focus on active and disciplined capital management, which supports the company's full-year earnings forecast.

Conclusion and Forward Outlook

The third quarter of fiscal year 2025 was a transformative period for Metaplanet. The company delivered exceptional growth in revenue and profitability, radically strengthened its balance sheet, and successfully executed its core strategy of Bitcoin accumulation. The introduction of new KPIs like BTC Yield provides shareholders with clear metrics to track the value being created through this unique corporate model.

Looking ahead, the company has provided an updated full-year consolidated earnings forecast for FY2025, projecting revenue of ¥6,800 million and operating income of ¥4,700 million. The strategic initiatives undertaken, including the pivot towards preferred share financing and the establishment of a flexible credit facility, position Metaplanet to continue pursuing its long-term objectives with enhanced financial strength and adaptability. The company is well-capitalized and strategically focused on compounding Bitcoin-per-share for its common equity holders while pioneering the Digital Credit market in Japan.

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