The Bitcoin Strategy of Metaplanet
Japanese firm Metaplanet has big plans to make use of its Bitcoin reserves for acquiring cash-generating businesses. This might even include buying a digital bank in Japan.
Accumulating Bitcoin for Expansion
In a recent interview with the Financial Times, CEO Simon Gerovich explained that the corporate is in a race to build up as much Bitcoin (BTC) as possible. The goal is to make use of these holdings as leverage for expansion.
“We think of it as a Bitcoin gold rush,” said Gerovich. “We need to accumulate as much Bitcoin as we can to reach a point where we’ve achieved escape velocity, making it very difficult for others to catch up.”
The Tokyo-listed firm, initially a hotel operator, began buying Bitcoin in 2024 as a hedge against inflation. They presently hold 15,555 BTC and aim to extend this to over 210,000 by 2027, which can be 1% of all Bitcoin that can ever exist.
Top public Bitcoin treasury firms. Source: BitcoinTreasuries.NET
Metaplanet to Use Bitcoin for Acquisitions
The second phase of Metaplanet’s plan involves using Bitcoin as collateral to access financing, just like securities or government bonds.
“We’ll get cash that we can use to buy profitable businesses,” Gerovich stated.
Future acquisitions would ideally align with the corporate’s strategy. “Maybe it is acquiring a digital bank in Japan and providing digital banking services that are superior to what retail currently offers,” he said.
Exploring New Financial Options
While crypto-backed lending remains to be rare in traditional banking, some institutions are starting to explore it. For instance, in April, Standard Chartered and OKX launched a pilot program allowing institutions to make use of crypto and tokenized money market funds as collateral.
Although Gerovich ruled out issuing convertible debt, he’s open to using preferred shares to fund growth. “I don’t want to have to pay back the money in three, four years’ time and have repayment linked to an arbitrary share price,” he explained.
Metaplanet Resumes Buying Spree
On Monday, Metaplanet added 2,204 BTC to its reserves for $237 million, with each Bitcoin purchased at about $107,700. This latest acquisition increases its total holdings to fifteen,555 BTC at a mean purchase price of around $99,985 per coin.
Metaplanet’s stock has climbed over 345% this yr, raising its market cap above $7 billion despite limited revenue. The company mirrors Michael Saylor’s strategy, which holds over 597,000 BTC and has a $112 billion market cap.
Image Credit: cointelegraph.com
