tl;dr
Japanese firm Metaplanet is leveraging its Bitcoin holdings to expand by acquiring cash-generating businesses, including a potential digital bank in Japan. Initially a hotel operator, the company began buying Bitcoin in 2024 and currently holds 15,555 BTC, aiming to increase to over 210,000 BTC by 2...
Japanese firm Metaplanet is strategically leveraging its Bitcoin holdings to fuel expansion plans, aiming to acquire cash-generating businesses, including a potential digital bank in Japan. CEO Simon Gerovich likened this push to a "Bitcoin gold rush," emphasizing the urgency to accumulate as much Bitcoin as possible to gain a competitive edge and reach what he calls "escape velocity."
Originally a hotel operator listed in Tokyo, Metaplanet began acquiring Bitcoin in 2024 as an inflation hedge and currently holds 15,555 BTC. The company targets a massive increase to over 210,000 BTC by 2027, representing 1% of the total supply of Bitcoin that will ever exist. This accumulation is a foundation for phase two of their strategy: using Bitcoin as collateral to secure financing for acquisitions.
Gerovich outlined plans to use crypto-backed lending, previously a niche practice, to obtain cash for buying profitable enterprises aligned with their vision. A key focus might be acquiring a digital bank in Japan to offer superior digital banking services to retail customers. While traditional banks have shown limited adoption of crypto as loan collateral, recent initiatives, like those by Standard Chartered and OKX, indicate growing institutional interest.
Metaplanet’s cautious financing approach excludes issuing convertible debt but remains open to using preferred shares, avoiding pressure from fluctuating share prices. Strengthening its Bitcoin stash, the company recently bought 2,204 BTC for $237 million at an average price of about $107,700 per coin, raising its total holdings to 15,555 BTC with an average acquisition cost just under $100,000 per coin.
This aggressive strategy has paid off in the stock market, with Metaplanet's shares surging over 345% this year, propelling its market capitalization beyond $7 billion despite modest current revenues. The firm's approach echoes that of Michael Saylor’s MicroStrategy, which famously holds over 597,000 BTC and commands a $112 billion market cap, highlighting a growing trend of companies using Bitcoin as a cornerstone of corporate growth and capital structure innovation.