Metaplanet Offers $1.4 Billion in Shares to Buy More Bitcoin

Asia Pioneer

In May 2024, Metaplanet officially adopted Bitcoin as its core reserve asset under its " Strategic Treasury Conversion and Bitcoin Adoption " policy, viewing BTC as a superior hedge against inflation and fiat currency erosion compared to traditional yen-denominated assets.

The strategy mirrors that of MicroStrategy but is tailored to Japan’s low-interest-rate environment, where zero-coupon bonds and equity issuances allow for low-cost capital raising. Metaplanet has since built its BTC holdings through innovative forms of financing: callable warrants with investor Evo Fund (raising over ¥242 billion by 2025), zero-coupon bonds, and options trading.

By Q2 2025, the company’s Bitcoin income business — primarily writing covered options and volatility trading — had generated ¥1.9 billion in revenue, contributing to an operating profit of ¥816 million on total revenue of ¥1.2 billion. The company currently operates two segments: Bitcoin Treasury (maximizing BTC yield per share) and Hotel/Others.

Metaplanet’s BTC Yield Index — a key performance metric that measures BTC growth per diluted share — has gained 487% year-to-date as of September 8, far exceeding Bitcoin’s 120% gain by 2025. Targets include 30,000 BTC by year-end, 100,000 by year-end 2026, and 210,000 (1% of total Bitcoin supply) by 2027. Recent milestones include surpassing Tesla’s holdings in June 2025 and joining the FTSE Japan Index in August, attracting passive capital.

Pressure dilutes amid optimism

The announcement was met with mixed reactions. Metaplanet shares (MTPLF on OTCQX) fell 10% on September 9, closing near a four-month low of around 614 yen ($4.17), reflecting dilution concerns from a 51% increase in the number of shares outstanding. The stock has fallen 39% over the past month and 54% since its mid-June peak of 1,934 yen, despite a 150-500% gain on the year and trading at 2x Bitcoin’s net asset value (NAV) — down from 8x in June. Analysts noted that the “flywheel” effect — where rising shares fund additional BTC purchases — has slowed, reducing liquidity from warrant buy orders. However, the overall sentiment remains bullish.

The scale-up reflects strong global demand, with interest from institutions like Nakamoto Holdings (committing $30 million). Bloomberg analysts warn of volatility if premiums continue to fall, but NYDIG’s Greg Cipolaro sees this as a maturing trend: Public companies now hold more than 1 million BTC in total, with Treasury bonds expanding to ETH and SOL.

Evaluation and Conclusion

Share dilution erodes the value of BTC per share, and a 30-50% drop in BTC could amplify the sell-off. Regulatory scrutiny of crypto-backed bonds and volatility in the yen add to the pressure. However, Metaplanet’s 60.9 million yen bond debt gives it a 34.65x BTC/debt ratio, providing a buffer. With BTC eyeing $120,000 amid institutional inflows, the capital raise could add around 11,200-12,590 BTC (a 62.5% increase in holdings), cementing its dominance.

Disclaimer: The information presented in this article is the author's personal opinion on the cryptocurrency field. It is not intended to be financial or investment advice. Any investment decision should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in the article do not represent the official position of the platform. We recommend that readers conduct their own research and consult with a professional before making any investment decisions.