Bitcoin Gambit: Metaplanet’s $1.45B Bet to Hedge a Weak Yen

Metaplanet, a Japanese firm previously known for its hospitality and real estate operations, has announced a $1.45 billion share sale to fund further Bitcoin purchases and expand its digital asset business. The international offering consists of 385 million new shares priced at 553 yen ($3.75) each, representing a 9.9% discount to the company’s closing stock price of 614 yen on September 9. The proceeds will be allocated primarily to the acquisition of Bitcoin, with an estimated ¥183.7 billion ($1.25 billion) earmarked for BTC purchases and ¥20.4 billion ($139 million) for Bitcoin-related income generation. The payment date is set for September 16, with shares to be delivered on September 17.

The company’s Bitcoin strategy, which began in April 2024, has been a response to Japan’s economic challenges, including high national debt, negative interest rates, and the yen’s depreciation. To date, Metaplanet holds 20,136 BTC, valued at approximately $2.08 billion, placing it among the top six public companies globally in Bitcoin treasury holdings. The firm has already increased its stash by 136 BTC this month, bringing total holdings to over 20,000 coins. Metaplanet has set ambitious targets to grow its Bitcoin reserves to 100,000 BTC by the end of 2025 and 210,000 BTC by 2027, equivalent to 10% of the total Bitcoin supply.

The move highlights a broader trend of institutional adoption of Bitcoin as a treasury asset, with more than 1 million BTC now held by public companies globally. Dan Dadybayo, research and strategy lead at Unstoppable Wallet, noted that Metaplanet’s initiative signals the global spread of corporate Bitcoin adoption, not just in the U.S. but across Asia as well. This trend is further supported by the emergence of Bitcoin-focused ETFs, such as BlackRock’s iShares Bitcoin Trust (IBIT), which has become the fastest-growing ETF in history.

Despite the strategic shift, Metaplanet’s stock has faced volatility. Shares have fallen nearly 39% in the past month, even as Japan’s Nikkei Index rose. This decline is attributed to a narrowing premium between the company’s share price and its net asset value (NAV), a common issue among Bitcoin treasury firms. Analysts warn that this premium gap can become a significant source of volatility for such firms. Nevertheless, Metaplanet’s Bitcoin yield metric, which measures the growth of Bitcoin held per fully diluted share, remains strong, with a 129.4% increase in Q2 and a 30.8% rise in Q3 to date.

The share issuance marks the formal execution of a shareholder-approved plan announced in September, which allowed for the overseas issuance of up to 550 million new shares. The offering is expected to significantly increase the company’s outstanding shares, from approximately 756 million to more than 1.4 billion, potentially leading to increased dilution for existing shareholders. Despite these risks, the company remains committed to its long-term strategy of using Bitcoin as a hedge against inflation and a means of diversifying its balance sheet.