Metaplanet Inc.

Risk of Customer Cryptocurrency Assets Being Diverted and Custody Management Risk

A theme concerning the risk of customers’ crypto assets and money being lost or misused in the crypto-asset exchange business, as well as custody and management measures such as cold wallets, multisignature security, two-factor authentication, and segregation through trust accounts.

6companies7 threads

hurts 7

FY2019-Q3 →

Excess Liabilities and Deterioration in Consolidated Net Assets

The risk that excess liabilities on a consolidated basis, resulting in negative net assets, or a substantial decline in consolidated net assets due to impairment losses or other factors, could affect the Group’s financial base. This concerns the consolidated net assets of the Group as a whole, rather than excess liabilities at an individual consolidated subsidiary.

6companies6 threads

hurts 6

FY2021 →

Diversification of Hotel Business and Operating Cities

An initiative to strengthen the hotel business by expanding the cities in which it operates and the sources from which it acquires hotel sites, and by pursuing hotel development in multiple regions regardless of the investment structure.

5companies5 threads

helps 5

FY2019 → FY2020

Risk of Damage to Hotel Facilities and Business Suspension Due to Natural Disasters or Accidents

The risk that hotel facilities may be damaged by natural disasters such as earthquakes, windstorms and floods, or by accidents and fires, resulting in temporary business suspension or lower revenue. This risk concerns damage to hotel facilities and its impact on the continuation of operations.

5companies5 threads

hurts 5

Strategic Expansion of Bitcoin Holdings

A capital allocation and financial strategy to significantly increase bitcoin holdings over the medium to long term using funds raised in the capital markets. It sets specific, time-bound targets for bitcoin holdings.

3companies5 threads

helps 5

FY2024 →

Exit from hotel operations through termination of leases for operating sites

An initiative to exit the operation of a hotel by terminating its lease, ending operations and returning the property. Termination settlement payments and security deposit refunds are allocated to strengthen the financial position and fund the business.

3companies3 threads

helps 3

FY2018-Q1 → FY2025

Expansion of the Hotel Business and Southeast Asian Operations through the Acquisition of 6 Thai Entities

A transaction involving the acquisition of 6 entities that own and operate hotels in Thailand, aimed at expanding the hotel asset portfolio and regional operations in Southeast Asia. It also covers the subsequent transfer of the shares and receivables due to the inability to repay the debt and perform the guarantees, which ultimately led to their exclusion from consolidation.

3companies3 threads

helps 3

FY2018 → FY2022-Q2

Reorganisation of reportable segments following an increase in consolidated subsidiaries and withdrawal from the crypto-asset business

A theme involving the reorganisation of reportable segments in response to changes in the business portfolio, including expanding the segments from 6 to 8 following an increase in consolidated subsidiaries and subsequently discontinuing segments in connection with the withdrawal from the crypto-asset and blockchain businesses.

3companies5 threads

hurts 2 · flat 3

FY2017-Q2 → FY2026-H1

Diversifying Risks and Accelerating Decision-Making by Consolidating the Crypto-Asset Business under an Intermediate Holding Company

A restructuring theme involving the consolidation of crypto-asset exchange, investment and fund management businesses under an intermediate holding company to diversify risks by business and accelerate decision-making. It addresses the establishment of a holding company structure focused on the crypto-asset business.

Shifting Demand from Inbound Visitors to Japanese Guests

FY2017-Q3 → FY2026-H1

An initiative to shift hotel demand toward Japanese guests by emphasizing safety and security, diversifying accommodation plans, and expanding services to offset the decline in inbound demand during the pandemic.

Reduction of Company-Wide SG&A and Headquarters Expenses and Diversification of Revenue-Generation Methods

FY2020-Q2 → FY2024

An initiative to reduce the company-wide cost burden by reviewing selling, general and administrative expenses for each segment and headquarters expenses, and consolidating management resources. In addition to reducing hotel operating costs, it also combines bitcoin operations and adoption as measures to secure earnings.

New Development and Monetization of Bitcoin-Related Businesses

An initiative to develop and monetize related businesses, including Bitcoin Magazine and corporate initiatives, in addition to yield income from holding and managing bitcoin.

BTC- and mNAV-linked capital allocation discipline

FY2024-H1 →

An ongoing capital allocation policy combining preferred shares, common shares, share repurchases, bonds, borrowings and bitcoin income, managed based on enterprise value, BTC yield and mNAV.

2companies4 threads

helps 4

Securing Development Funding Through Monetization of Hotel Construction Land

An initiative to place the hotel construction site into a trust, transfer the beneficial interest to an SPC, and secure funding to commence hotel construction by monetizing the land.

Loss and Opportunity-Cost Risks of the Bitcoin Option-Selling Strategy

FY2016-Q2 → FY2016

Risk of being obligated to acquire BTC at prices above the market price, suffering opportunity losses when prices rise, and having collateral funds tied up as a result of selling cash-secured BTC puts and calls. This covers the loss and capital lock-up risks inherent in short positions in crypto asset options.

Guarantee Losses of a Hotel Operating Subsidiary

This covers a series of guarantee obligation issues relating to guarantees of obligations under a fixed-term building lease agreement of a hotel operating subsidiary, including the recognition of a provision for guarantee losses and the subsequent gain on debt forgiveness arising from the subsidiary’s bankruptcy and liquidation.

Fixed Rent Obligations for Hotel Following Sale-and-Leaseback

FY2020 → FY2024

Fixed rent obligations will arise from continuing to operate the hotel after transferring the hotel real estate in a sale-and-leaseback transaction. The hotel closure will reduce the scope of the obligations, but the costs arising from the contract will be addressed.

Financing Constraints Due to Incomplete Listing Review for Preferred Shares

FY2017 → FY2023-Q1

The risk that the reviews and approvals required to list the preferred shares will not be completed by the deadline, resulting in failure to list and associated financing constraints.

Lower Music Distribution Revenue Due to Fewer New Releases and Delays in Promoting the M-CARD Service

FY2025 → FY2025

Risk of lower music distribution revenue due to a decline in new releases and delays in plans to promote the M-CARD service.

Enhancing Profitability and Management Through the Use of IT in Hotel Operations

FY2016-Q2 → FY2017-Q2

An initiative to apply IT expertise in areas such as reservations, customer communications, revenue management and management analysis to hotel operations, thereby improving profitability and management standards.

Hiroshima City Naka Ward Hotel Development and Opening

FY2017-Q3 →

A specific project involving the acquisition of a hotel site in Naka Ward, Hiroshima City, followed by construction and the opening of the hotel. The project covers the period from the land acquisition plan through the hotel’s opening in August 2020.

Financing and BTC accumulation stagnate as the mNAV premium declines

FY2018-Q2 → FY2020

The risk that a decline in the mNAV premium, particularly if mNAV falls below 1.0x, will constrain funding through common share offerings and other means, causing additional BTC purchases and accumulation to stall.

USD Coin Holdings and Use in Bitcoin Transactions

A theme involving companies holding USD Coin and using it for settlement and as a trading medium in Bitcoin transactions. It covers disclosures on changes in holdings and the amounts recognized on the balance sheet.

Becoming a parent company through Red Planet Holdings, etc., followed by a change to having no parent company

The transition in capital relationships whereby Red Planet Holdings and its parent company became new parent companies through a third-party allotment, followed by a sale of shares that resulted in a relationship with no parent company or equivalent entity.

Expansion and Downsizing of the Value Hotel Business in Asia

FY2016 → FY2024

A theme indicating a policy of expanding the business through the ownership and operation of value hotels targeting Asia’s tourism industry, followed by the limitation and downsizing of the hotel business.

Securing Funding for Domestic Hotel Development through Joint Ventures and Future Funds

An initiative to secure capital through joint ventures with asset management companies and the establishment of funds in the future, and to invest in new domestic hotel development. The focus is on raising development capital through joint ventures and fund formation, rather than on schemes for acquiring and holding hotel assets.

Corporate name change from レッド・プラネット・ジャパン to Metaplanet Inc.

FY2018 → FY2022-Q2

Change in the corporate name of a standalone company: 株式会社レッド・プラネット・ジャパン changed its corporate name from its former hotel-focused name to Metaplanet Inc. in February 2023. The matter concerns the transition to the company’s current name.

Capital Recovery through Sale-and-Leaseback Transactions for Hotel Real Estate

FY2023 → FY2023

An initiative to continue operating hotels under lease agreements after selling the hotel real estate, recover invested capital, and secure capacity for new investment in the hotel business. This consists of individual sale-and-leaseback transactions covering multiple hotels.

Buyback and Transfer of Equity Interests in Red Planet Nagoya Nishiki SPC

FY2017 → FY2019

A capital transaction in which the external investors’ interests in Red Planet Nagoya Nishiki SPC were bought back, making it a subsidiary, and the interests were subsequently transferred together with those of a hotel-related company, removing them from the scope of consolidation. This concerns a change in the ownership structure and a shift in the sale policy for a specific SPC, rather than a reduction in the operation of the hotel business as a whole.

Dependence on External Conditions for Core Business Earnings Improvement

FY2017-Q3 → FY2022-Q2

This risk concerns the uncertainty that the success of initiatives to improve profits and earnings power in the core business is heavily influenced by external conditions, rather than by the company’s own measures alone. It is the risk of ongoing dependence on external factors, without being limited to specific economic conditions, exchange rates, prices or regulations.

Investment in Two Hotel Developments in the Philippines

An individual project aimed at expanding the overseas hotel portfolio through investment in the development of 2 hotels in the Philippines, including the acquisition of land leasehold rights and assets under development. The investment plan ended after the transfer of shares in the development company was completed.

Building a Bitcoin Financial Products Platform Through the Acquisition of Siiibo証券

FY2018-Q2 → FY2023-Q3

An initiative to acquire Siiibo証券 and obtain a financial platform covering the planning and structuring of Bitcoin-based financial products through their sale to domestic investors.

Investment in and Incubation of Bitcoin-Related Companies

FY2026-H1 → FY2026-H1

A new business providing venture investment in Bitcoin-related companies, incubation, and grants for domestic stakeholders through Metaplanet Ventures.

Share Transfer and Deconsolidation of the Food and Beverage Business

FY2026-H1 → FY2026-H1

An exit from the business following the transfer of shares in 10 subsidiaries and other entities engaged in the food and beverage business, which were consequently excluded from the scope of consolidation. In the company’s history, the event is restated as part of a past business portfolio rationalization.

1companies2 threads

helps 1 · flat 1

FY2016-Q2 → FY2018

Failure to Achieve Hotel Collaboration with Parent Company Group and Investment Burden

Risk that collaboration in the hotel business with the parent company group, including RPH社, will not progress as planned, resulting in substantial capital investment and operating costs, higher borrowing costs, and unexpected expenses.

Normalization of Operations at Hotels Affected by Natural Disasters

A temporary theme focused on restoring operations at hotels affected by earthquakes and typhoons through cooperation with the government, partner travel agencies and employees, with the aim of returning to normal by year-end.

完成したホテル不動産を信託設定し、信託受益権として売却することで、売却益を計上し資本を回収する個別の資産売却。

ビットコインを主要資産とするバランスシートを基盤に、BitBondsとしてビットコイン裏付け社債を発行し、継続的な資金調達戦略を構築するテーマ。

Consideration of and Withdrawal from Entry into Digital Businesses such as Web3 and the Metaverse

FY2026-H1 → FY2026-H1

An initiative in which the company considered entering digital-related businesses such as Web3 and the metaverse as a source of revenue other than its hotel business, but abandoned the plan due to a lack of visibility on monetisation and redirected the funds to purchasing and holding bitcoin.

Shareholder Value KPI Management Based on Bitcoin Holdings and BTC Yield

FY2022-Q2 → FY2024

A theme focused on continuously evaluating and disclosing the execution of the bitcoin acquisition strategy and its contribution to shareholder value using metrics such as BTC Yield, BTC Gain and BTC Yen Gain, which indicate the relationship between bitcoin holdings and fully diluted shares outstanding.

Preferred stock dividend risk due to insufficient earnings from the Bitcoin income business

FY2024 →

Because the funding source for preferred stock dividends depends on earnings from the Bitcoin income business, deterioration in the business's earnings environment could constrain the payment or amount of dividends.

Rebranding and Conversion of the Gotanda Hotel Property into a Metaverse Hub

A conversion plan for a specific property to rebrand Hotel Royal Oak Gotanda and ultimately redevelop it as the metaverse hub and members' club “WEN Tokyo.”

Hotel Business Portfolio Restructuring and Operational Downsizing

FY2016-Q3 → FY2023-Q1

A review of the hotel business portfolio as a whole, including ending operations at domestic leased hotels and Thai hotels where recovery is difficult, and considering whether to continue operating other hotels and overseas businesses. This involves decisions on whether to continue multiple businesses and regions and restructuring the business portfolio, rather than being limited to terminating the lease of a specific hotel.

Hotel Development Projects in Nagoya and Sapporo

FY2022-Q1 →

Multiple hotel development projects in Nishiki, Naka-ku, Nagoya, and Chuo-ku, Sapporo, progressing through land acquisition, construction commencement, completion and opening. These are individual domestic hotel development projects tied to specific locations and periods.

Kyoto City Hotel Opening Plan

FY2016-Q2 → FY2019

A plan to develop a new hotel in Kyoto City, targeting an opening in 2021. An individual project concerning hotel development and opening timing in a specific area.

Development of a Digital Credit Market Through Bitcoin-Backed Perpetual Preferred Shares

FY2019-Q3 → FY2020

A theme centered on issuing bitcoin-backed perpetual preferred shares, using them as a form of digital credit, and developing the related Japanese capital market.

Revenue and Profit Growth in Hotel Operations Driven by New Hotel Openings

This theme covers increases in revenue and operating profit triggered by the opening of new hotels, as well as record monthly operating profit. It focuses on improved performance driven by the expansion of hotel operations.

Maintaining Sales Scale and Improving Sales Efficiency in the Distribution Business

FY2018-Q3 →

An initiative in the distribution business aimed at improving operational efficiency by strengthening sales support, sales efficiency, packaging, and collaboration initiatives while maintaining sales scale. The policy was subsequently shifted toward selling the business.

Financial strategy centered on Bitcoin as the primary reserve asset

FY2016-Q2 → FY2016

A financial policy aimed at enhancing corporate value by acquiring and holding Bitcoin in large quantities as a primary reserve asset, combined with fiat-denominated financing and the monetization of held assets.

Uncollectibility of Proceeds from Transfer of Food and Beverage Business

FY2026-H1 →

The risk that collectability from the transferee of the food and beverage business will decline for long-term accounts receivable related to the transfer proceeds, resulting in the recognition of an allowance for doubtful accounts or a loss.

Sale of Real Estate at a Closed Hotel and Repayment of Borrowings

FY2016-Q2 → FY2021

An event involving the sale of the beneficial interest in a real estate trust holding a hotel that has ceased operations, with the sale proceeds applied to repayment of bank borrowings to reduce the financial burden. It covers the sale of a specific property and debt reduction following the withdrawal from hotel operations.

Music Content Acquisition and Distribution Business

FY2023-Q1 → FY2023-Q2

Initiatives to acquire music content through Anysee.jp’s crowdsourcing service and new-release sales activities, and connect it to the distribution business. Excluded from the ongoing scope following the sale of the distribution business.

Confidential and Personal Information Leakage Risk

FY2016-Q2 → FY2016

Contested

Companies in these themes point in more than one direction. The same force lifts one filer and costs another, and the split is the reading.

An ongoing management issue concerning the risk of confidential and personal information being leaked due to cyberattacks, system failures and other causes, and the systems for prevention and response.

Concentrated in Information & Communications・ Services and Others・ Retail・ Real Estateshrinking against other themes

1120companies1135 threads

helps 3 · hurts 1132

Credit Risk Management for Customers and Business Partners

A risk theme focused on monitoring customers’ credit standing and managing the risk of bad debts and collection delays through measures such as monitoring the due dates and outstanding balances of trade receivables in accordance with the credit management rules.

Concentrated in Information & Communications and Services—Other・ Trading Companies & Wholesale・ Materials & Chemicalsmoving with the rest

1032companies1077 threads

helps 18 · hurts 1057 · flat 2

Continuous Strengthening of Corporate Governance and Internal Control Systems

A theme focused on continuously strengthening internal control systems and corporate governance through the standardization and streamlining of operations, risk management, information disclosure and other measures. This also includes changes to the structure of the board of directors and the audit and supervisory committee.

Concentrated in Information and Communications・ Services and Others・ Construction and Materials・ Retaillast written FY2025

1004companies1110 threads

helps 1104 · hurts 4 · flat 2

Impact of FX fluctuations and foreign-currency transactions on results

A theme in which exchange-rate movements, such as yen appreciation, affect yen-denominated sales, manufacturing costs, operating income, foreign exchange gains or losses, and ordinary income even when volumes remain stable. The direction of the impact on profits varies depending on foreign exchange gains or losses and the assumed exchange-rate level.

Concentrated in Information & Communication・ Services and Other・ Electrical Equipment & Precision Instruments・ Raw Materials & Chemicalsgrowing faster than other themes

518companies533 threads

helps 22 · hurts 452 · flat 59

Risk of Dependence on Key Executives

Broad

Themes almost every covered company sits in, where the direction is unanimous. The company list is the value here, not the direction — these are the ones worth scanning for who is missing.

The risk that business operations and decision-making depend on the abilities, judgment and continued tenure of a specific executive, such that the executive’s absence or change could affect management. This includes situations where the company is working to delegate authority and establish an organizational management structure, but remains highly dependent on that executive.

Concentrated in Information & Communications・ Services and Others・ Retail・ Real Estateshrinking against other themes

570companies570 threads

hurts 570

Corporate Governance Focused on Efficiency, Legal Compliance, and Transparency

The policy is to maintain sound corporate governance by balancing management efficiency with compliance with laws and regulations, through timely disclosure and transparent management. It has remained in place since the transition to a Company with an Audit and Supervisory Committee.

Concentrated in Information & Communications・ Services and Others・ Retail・ Construction & Materialsshrinking against other themes

513companies516 threads

helps 513 · hurts 2 · flat 1

Demand fluctuations caused by uncertainty in overseas economies and financial markets

A slowdown in overseas economies, uncertainty surrounding trade policies and tariffs, and volatility in financial and capital markets pose a risk of weighing on overseas orders, particularly from China and other parts of Asia, and on business performance.

Concentrated in Information & Communications・ Services and Other; Electrical Appliances & Precision Instruments; Construction & Materialsgrowing faster than other themes

437companies448 threads

hurts 447 · flat 1

Litigation and Litigation-Related Loss Risk

The risk that a company incurs expenses or losses due to litigation or the recognition of litigation-related losses. It is not limited to disputes with specific product sales destinations or business partners.

Concentrated in Information and Communications・ Services and Other・ Materials and Chemicals・ Electric Appliances and Precision Instrumentsshrinking against other themes

338companies340 threads

hurts 340