Japanese investment firm Metaplanet reported a significant 39% decline in its Bitcoin portfolio valuation during October’s market downturn. The company’s cryptocurrency holdings were substantially impacted as Bitcoin prices fell below the average acquisition cost of numerous corporate treasury vehicles. The sharp correction in digital asset markets during October created widespread pressure on corporate balance sheets, with many institutional holders seeing their cryptocurrency reserves depreciate below purchase thresholds. Market analysts note that the volatility exposed the inherent risks corporations face when maintaining Bitcoin as treasury assets, particularly during periods of rapid price depreciation. The situation highlights the challenges of cryptocurrency accounting and valuation for public companies navigating digital asset adoption. While Metaplanet maintains its Bitcoin position as a long-term strategic reserve, the recent market movements demonstrate the liquidity and valuation pressures that can affect corporate treasuries during crypto market corrections. The company continues to monitor its digital asset allocation amid ongoing market fluctuations.
