Benchmark cuts Metaplanet target, says earnings show ‘promise and peril’ of bitcoin pivot

Benchmark analyst Mark Palmer maintained a "buy" rating on Metaplanet but significantly cut the price target from \u00a52,400 to \u00a51,100, citing that the company's recent earnings reveal both the "promise and peril" of its aggressive bitcoin treasury strategy. Metaplanet reported a $619 million net loss for the fiscal year ended December 31, primarily due to non-cash valuation losses on its BTC holdings, although operating performance improved via bitcoin-related financial services. The company holds 35,102 BTC, but with an average purchase price above $107,000, it currently faces an unrealized loss of about $1.4 billion. Benchmark views Metaplanet's expanding Bitcoin Income Generation business, which uses options and yield strategies, as key to funding dividends without selling core BTC, but warns that volatility and shareholder dilution remain major risks.

(Source：The Block)