Metaplanet Plans $250 Million Bond to Boost Bitcoin Holdings, Aims to Outperform MicroStrategy

Metaplanet, a Japanese firm, has recently established its U.S.-based subsidiary, Metaplanet Treasury Corp., with a clear focus on accumulating Bitcoin. The company plans to issue a $250 million bond to finance additional Bitcoin purchases, demonstrating its strong commitment to a Bitcoin-centric strategy. This move positions Metaplanet as a significant player in the Bitcoin market, aiming to outperform competitors like MicroStrategy.

Adam Back, the CEO of Blockstream, has asserted that Metaplanet is more efficient than MicroStrategy in generating returns from Bitcoin. He introduced a metric called “months to mNAV cover,” which indicates that Metaplanet can achieve a 2x BTC yield in just three months. Currently, Metaplanet’s market Net Asset Value (mNAV) is at 3.3x, with the potential to reach 8.3x if the current trend continues. This growth could drive Metaplanet’s stock price from ¥533 to ¥1,340, according to Back. He also noted that Metaplanet is growing 3.8 times faster than MicroStrategy in terms of mNAV coverage.

Metaplanet currently holds over $536 million in Bitcoin, acquired at an average price of $86,672 per coin. The company’s BTC yield is projected to be 136.7% by 2025, and its stock has recently surged by 11.5%, closing at ¥477 ($3.33). Despite these positive indicators, crypto analyst @agentic_t cautioned that market volatility should be considered, and risk-adjusted returns should be evaluated. He warned that while 2x yields are attractive, they are not always guaranteed.

MicroStrategy, known for its aggressive Bitcoin accumulation strategy, has amassed 550,000 BTC, positioning itself as a high-beta proxy for Bitcoin. This strategy aims to leverage Bitcoin's price appreciation to drive shareholder value, making it a high-risk, high-reward investment. In contrast, Metaplanet has acquired 555 BTC worth approximately $53.4 million, bringing its total holdings to 5,555 BTC. Metaplanet’s approach focuses on a more diversified investment strategy, which may offer a more stable return on investment compared to MicroStrategy’s aggressive accumulation.

Adam Back’s prediction that Metaplanet will outperform MicroStrategy in Bitcoin returns is based on the belief that Metaplanet’s diversified investment strategy will be more resilient to market volatility. While MicroStrategy’s aggressive approach has the potential for significant gains, it also carries a higher risk of loss. Metaplanet’s strategy, on the other hand, may provide a more consistent return on investment, making it a more attractive option for investors seeking stability.

The competition between Metaplanet and MicroStrategy underscores the growing interest in Bitcoin as a store of value and a hedge against inflation. Both companies have recognized the potential of Bitcoin and have taken significant steps to position themselves as leaders in the digital asset space. As the market for Bitcoin continues to evolve, it will be interesting to see how these two companies fare in their respective strategies and whether Adam Back’s prediction will materialize.