Bitcoin News Today: Metaplanet's Bitcoin Gambit: Can the Flywheel Stay Spinning?

Metaplanet’s Bitcoin holdings have reached 20,000 BTC after a recent acquisition of 1,009 Bitcoin for approximately $112 million, according to the firm’s latest disclosure. This purchase brings the company’s total Bitcoin stash to roughly $2.14 billion in value at current market prices, pushing its average cost per Bitcoin to $102,800. The latest addition represents a significant milestone, with Metaplanet now surpassing Riot Platforms to become the sixth-largest public Bitcoin holder globally, as reported by recent data.

The acquisition was made at an average price of $111,000 per Bitcoin and was funded through a combination of capital market activities and operating income. Metaplanet’s aggressive accumulation strategy has accelerated over the past months, increasing its holdings from over 13,000 BTC in late June to 20,000 BTC by the end of August. The company has also adjusted its Bitcoin acquisition targets for the year, revising its goal upward from 10,000 to 30,000 BTC, reflecting its intensified focus on expanding its digital treasury.

The company uses internal performance metrics, such as BTC Yield and BTC Gain, to evaluate the impact of Bitcoin on shareholder value. For the quarter ending Sept. 1, Metaplanet reported a BTC Yield of 30.7%, measuring the value of its Bitcoin holdings relative to its fully diluted shares. While not traditional financial indicators, the firm utilizes these metrics to assess whether its Bitcoin purchases are accretive to shareholders. In previous quarters, the BTC Yield had reached as high as 309.8%, highlighting the aggressive nature of the firm’s strategy.

Metaplanet’s Bitcoin treasury operations were formally adopted as a core business in December 2024. The firm has since raised capital and converted proceeds into Bitcoin, aligning its strategy with U.S.-based MicroStrategy, which similarly positions Bitcoin as its primary reserve asset. Both companies argue that Bitcoin provides a hedge against inflation and currency dilution. The company’s CEO, Simon Gerovich, has previously indicated that the Bitcoin holdings could potentially be used as collateral for financing future business acquisitions.

In parallel, Metaplanet is pursuing a major capital-raising initiative. It plans to raise approximately $880 million through an international share offering, with most of the proceeds expected to be allocated toward further Bitcoin acquisitions in the coming months. The firm is also seeking shareholder approval to issue up to 555 million preferred shares, which could raise an additional $3.7 billion. These shares are designed as a defensive mechanism, offering up to 6% annual dividends and providing a source of funding without further diluting common shareholders, according to Gerovich.

Despite its growing Bitcoin reserves, Metaplanet has faced challenges in its share-based funding strategy, as its stock has declined 54% since mid-June. This has put pressure on its fundraising “flywheel,” a model reliant on rising share prices to generate capital through warrant exercises. With the company’s market capitalization premium over its Bitcoin holdings having fallen to 2x, analysts have expressed concerns about the sustainability of its expansion strategy. The firm has temporarily suspended warrant exercises and is now relying on alternative capital-raising methods to continue its Bitcoin acquisitions.

Source: [1] Metaplanet Bitcoin Holdings Climb To 20,000 BTC After $108.6M Purchase (https://finance.yahoo.com/news/metaplanet-bitcoin-holdings-climb-20-052149775.html) [2] Metaplanet Surpasses 20000 BTC With $112M Bitcoin ... (https://bitbo.io/news/metaplanet-20000-btc-milestone/) [3] Metaplanet tops 20000 Bitcoin ahead of key capital-raising ... (https://cryptobriefing.com/metaplanet-bitcoin-treasury-expansion/) [4] Metaplanet's Bitcoin strategy faces fundraising crunch as ... (https://cointelegraph.com/news/metaplanet-bitcoin-fundraising-flywheel-breaks)