BlockBeats News, February 18th, Benchmark maintains a "Buy" rating on Metaplanet but more than halves its price target, citing the company's latest financial report highlighting the "outlook and risks" of its aggressive Bitcoin accumulation strategy.Benchmark analyst Mark Palmer, in a research report on Tuesday, lowered the price target of this Tokyo-listed Bitcoin reserve company from 2,400 yen to 1,100 yen. He wrote that recent performance has demonstrated the "hope and danger" of the company's Bitcoin-centered financial strategy. The stock, traded in the U.S. OTC market under the code MTPLF, is currently priced around $2.20, having briefly dropped to around $1.85 earlier this month, nearing the lowest level since the company began executing its Bitcoin purchase strategy in April 2024.Metaplanet reported a net loss of $619 million for the fiscal year ending December 31st, primarily due to unrealized non-cash valuation losses on holdings caused by a late-year drop in Bitcoin prices. Nevertheless, its operating performance saw a significant improvement, with revenue and profit growing due to Bitcoin-related financial services activities.One key pillar of Benchmark's investment thesis is Metaplanet's continuously expanding Bitcoin fee-generating business, which generates revenue through Bitcoin-related options and yield strategies. Analysts believe that this segment allows the company to fund future BTC purchases through operational cash flow (rather than asset sales) by paying dividends to newly issued perpetual preferred shares without selling core Bitcoin holdings. The company added that investor demand for these preferred instruments will likely determine whether Metaplanet can successfully continue to expand its financial reserves while controlling dilution risk.

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