- Metaplanet issues $50M in 0% bonds to expand its Bitcoin holdings to 7,800 BTC, surpassing El Salvador’s national reserve.
- Amid Japan’s economic crisis, Metaplanet’s Bitcoin strategy fuels stock surge while short sellers raise valuation concerns.
- With a new Florida arm and $250M expansion plan, Metaplanet pushes its bold BTC treasury strategy despite mounting scrutiny.
Metaplanet has made another bold move in its Bitcoin acquisition strategy. The Tokyo-based investment firm issued $50 million in 0% ordinary bonds. This fresh capital will go entirely toward purchasing more Bitcoin. CEO Simon Gerovich confirmed the news, stating, “$50 million more BTC incoming.” This comes shortly after the firm acquired 1,004 BTC for $104.3 million on May 19. Metaplanet’s total Bitcoin holdings now stand at 7,800 BTC, surpassing El Salvador’s 6,189.18 BTC reserve.
Bitcoin Bet Amid Economic Turmoil
Japan is facing one of its worst economic crises in decades. Consequently, institutional investors are searching for new hedges. Metaplanet has become a primary gateway for such exposure. Hence, its stock price has been soaring for weeks. This rally reflects growing interest in firms embracing a Bitcoin-centric treasury model.
Besides, other Japanese companies are now following suit, adopting similar BTC accumulation strategies. However, not everyone is convinced. Research firm 10X Research flagged the company’s inflated valuation. According to their analysis, Metaplanet trades at an implied BTC price of $596,154. This figure is over five times higher than Bitcoin’s actual market value of $108,771.
Strategic Expansion Despite Criticism
Despite the skepticism, Metaplanet continues to scale. In April, the company launched a fully-owned subsidiary in Florida. This move aims to expand its Bitcoin treasury operations in a favorable regulatory environment. Florida, increasingly seen as a crypto hub, offers access to deeper institutional liquidity.
CEO Simon Gerovich said the US expansion involves capital plans of up to $250 million. Additionally, Metaplanet launched a two-year, ¥116 billion moving-strike warrant program. So far, it has executed 87% of this plan. The company calls it Japan’s largest and most cost-effective equity financing deal to date.
This aggressive treasury strategy mirrors MicroStrategy’s model. MicroStrategy recently bought 4,020 BTC worth $427.1 million. Although Metaplanet holds 7,800 BTC, MicroStrategy leads the pack with a massive 580,250 BTC.
Market Response and Future Outlook
Short sellers have taken notice. Metaplanet is now the most shorted stock in Japan. However, the firm remains firm in its belief that Bitcoin is a strategic hedge. The company insists its BTC play is designed for long-term value, not short-term speculation.
