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Metaplanet, a Tokyo-based investment firm, expects to turn a profit for the first time in seven years, largely due to its Bitcoin investments. Its revenue for FY24 is projected at $5.8 million, compared to last year’s $2.1 million, and assumes an operating profit of $2.2 million against last year’s loss of $3.8 million. A significant portion of this profit comes from selling Bitcoin put options. Besides Bitcoin, the firm also owns and operates the Royal Oak Hotel in Tokyo. Moverover, Metaplanet intends to expand its Bitcoin-related enterprises and holds the second-largest corporate Bitcoin share in Asia.

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The Bitcoin-heavy investment company, Metaplanet, expects to reap its first profit in 7 years, just months after starting to buy the cryptocurrency. The company, based in Japan, predicted in mid-December that it will rake in around $5.8 million in revenue for 2024 fiscal year as compared to last year’s $2.1 million. Their operating profit is also anticipated to jump from a loss of $3.8 million last year to a profit $2.2 million.

A hefty chunk of this income has come from the company selling Bitcoin put options, giving a nifty $4.2 million. This year saw a ton of companies putting Bitcoin strategies into play as its price skyrocketed, often leading to a boost in those companies’ value and stock prices.

Thanks to a strong performance from its hotel business and Bitcoin success, “The company is on a roll to make an operating profit for the first time since 2017,” their statement said.

The Tokyo-based investing firm went for a huge shift towards Bitcoin earlier this year, using it as a safety asset against currency depreciation.

Aside from its Bitcoin pursuits, Metaplanet also owns and operates the Royal Oak Hotel in Tokyo’s Gotanda district via its subsidiary, Wen Tokyo Co.

Part of Metaplanet’s future plans is to expand its operations beyond just collecting Bitcoin. In a different investor disclosure in mid-December, the firm declared it will establish “Bitcoin accumulation and management” as a formal business line, employing loans, equity, convertible bonds, and other financial instruments to “efficiently buy and hold Bitcoin.”

What’s more, it’s planning to use put option sales as an essential source of income in the future. In simple terms, put options are contracts that allow the owner to sell a particular asset at a fixed price. These agreements provide investors with a safety net against potential losses. Metaplanet makes a profit from each put option contract sold, whether it gets used or not. If the options do get used, it allows the company to fulfill its strategy and buy Bitcoin.

Not only that, but the company hopes to make money from Bitcoin-related marketing activities via its recently acquired licence to run a Japanese version of Bitcoin Magazine. Metaplanet currently holds its position as the second-largest corporate Bitcoin holder within Asia, after Boyaa Interactive. The company now holds 1,142 Bitcoins, worth approximately $119.4 million. Just recently, it announced the fourth issuance of its bond, worth almost $30 million, intending to accumulate more Bitcoin. There are also plans to issue another $40 million of private placement ordinary bonds.