Metaplanet to use bitcoin as collateral to buy digital bank
- Metaplanet plans acquisitions with bitcoin treasury
- Japanese company targets digital banking and cash flow
- Bitcoin will be used as collateral for expansion
Metaplanet, a Japanese company previously focused on the hotel sector and now recognized for its strong presence in bitcoin, announced plans to use its BTC holdings as collateral in future acquisitions. The company intends to acquire profitable businesses, including a potential digital bank in Japan.
On Monday, Metaplanet revealed the purchase of an additional 2.205 bitcoins for $238,7 million, bringing its total holdings to 15.555 BTC, valued at approximately $1,7 billion. The company now ranks fifth among the largest corporate holders of bitcoin in the world, trailing only the likes of Strategy, MARA, Twenty One and Riot Platforms.
CEO Simon Gerovich has called the current moment a “Bitcoin gold rush.” According to him, the strategy is in a phase of accelerated accumulation of BTC, with the aim of achieving what he called “escape velocity,” making it harder for competitors to reach the same level.
In what is known as “phase two,” Metaplanet plans to borrow bitcoin-backed funds to finance the acquisition of cash-generating companies. Gerovich explained that, as with government bonds, bitcoin could be used as collateral to obtain institutional credit.
“We will get money that we can use to buy profitable businesses, businesses that have cash flow,” the executive said. He indicated that the focus will be on companies that align with the vision of digital financial services, including the possible purchase of a digital bank to offer more effective banking solutions to the retail public.
Despite criticism of the company’s high market value relative to its net worth, Gerovich was blunt: “I encourage people to short our stock if they don’t believe the story.”
Since its change in strategy in April 2024, Metaplanet's market capitalization has surpassed ¥1 trillion (US$6,8 billion), while its shares have risen by more than 318% in the year, reflecting investor interest in the company's bet on bitcoin.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
AI investment enters the "Trough of Disillusionment", the next 18 months will be a life-or-death test!
Goldman Sachs believes that the AI investment cycle is currently in the "trough of disillusionment," but this is not the first time. The core contradiction lies in the fact that the business models of new cloud computing providers are highly dependent on end-user returns from AI spending, while currently "there are basically zero companies that can attribute profits to AI." Social Capital founder Palihapitiya has clearly defined an 18-month key window, during which the market will decide which AI business models are sustainable and which are not.
Anthropic's Core Concern: Revenue Can Be Withdrawn at Any Time, but Computing Power Costs Are Locked in for up to 20 Years
Zheshang Securities believes that Anthropic's revenue is mainly based on usage-based billing, with remaining performance obligations covering only about 5.1 months of annualized revenue, while compute power costs are already locked in with $895.4 billion in irrevocable commitments, some extending as far as 2045. Revenues can be reduced at any time, but costs are non-exitable, creating a highly asymmetric maturity gap between the two—this is the company's real core constraint.
Triple Pressure from the Federal Reserve, Treasury, and Congress; Goldman Sachs: Liquidity Crisis May Occur in 2027
Goldman Sachs warns that the reserve ratio of bank assets has dropped to around 11%, only slightly above the crisis trough of 2019. In the second half of 2027, a deadlock in debt ceiling negotiations will force the Treasury to rebuild the TGA, triggering a "perfect storm" of a sharp drop in reserves and a surge in T-bill supply; combined with stalled money market fund buying, this will create a huge liquidity black hole. The Federal Reserve could be forced into the awkward position of lowering interest rates and launching large-scale bond purchases to rescue the market.
Crypto prices
More
