TLDR
- Japanese firm Metaplanet aims to grow Bitcoin holdings from 1,762 BTC to 10,000 BTC by the end of 2025, using debt, equity and convertible bonds
- The company made its largest purchase of 619.7 BTC ($60 million) in December 2024, bringing its total supply to $174.5 million
- Revenue forecast at ¥890 million for 2024, up from ¥261 million last year
- CEO Simon Gerovich believes the US could adopt Bitcoin as a strategic reserve under a potential Trump presidency
- Critics have raised concerns about bitcoin’s volatility and the company’s risk management strategy
A Japanese investment firm Metaplanet has unveiled its plan to increase its Bitcoin holdings to 10,000 BTC by the end of 2025. The Tokyo-listed company currently holds 1,762 BTC, making it the largest corporate holder of bitcoin in Asia.
CEO Simon Gerovich announced the ambitious goal via a post on the X social media platform. The company plans to use a variety of financing tools, including debt, equity and convertible bonds, to finance these acquisitions.
Metaplanet started accumulating Bitcoin in April 2024, following the strategy of the American company MicroStrategi. The Japanese firm’s approach is aimed at protecting against local economic challenges, particularly the volatility of the Japanese yen and the country’s rising national debt.
In December 2024, Metaplanet made its largest purchase of Bitcoin to date. The company bought 619.7 BTC for approximately $60 million, bringing its total value at current prices to $174.5 million.
The company’s financial results show strong growth. For the fiscal year ending Dec. 31, 2024, Metaplanet forecasts revenue of 890 million yen ($5.8 million), compared with 261 million yen in the previous year. The company expects an operating profit of 270 million yen, recovering from a loss of 468 million yen in 2023.
Metaplanet has expanded beyond direct Bitcoin investments. In November 2024, the company partnered with BTC Media to launch Bitcoin Magazine in Japan. This partnership aims to provide local Bitcoin enthusiasts with educational content and market insights.
CEO Gerovich believes that global adoption of Bitcoin could accelerate under certain political conditions. He suggests that if the United States adopts bitcoin as a strategic reserve under a potential Trump presidency, other countries, including Japan, may follow suit.
Happy New Year to our valued shareholders! As we enter the year 2025, I couldn’t be more excited about what lies ahead for Metaplanet. Last year was transformative, as we broke records, expanded our Bitcoin treasury and solidified our position as Asia’s leading Bitcoin treasury… pic.twitter.com/K2HsOS8TaZ
— Simon Gerovich (@gerovich) January 5, 2025
The company’s strategy reflects the growing trend of corporate interest in Bitcoin. Several nations, including Hong Kong and Germany, have shown interest in Bitcoin as a hedge against economic uncertainty.
However, Metaplanet’s plan is facing criticism from various quarters. Financial analysts are expressing concern about the company’s exposure to bitcoin price volatility. They question whether the strategy assumes an overly optimistic view of future market conditions.
Some critics have raised questions about shareholder transparency. While Metaplanet pledges to keep shareholders informed, there are calls for more detailed explanations of risk management measures and long-term strategy.
The company’s current Bitcoin holdings represent about 17.6% of its ambitious goal of 10,000 BTC. To reach this goal, Metaplanet will need to acquire approximately 8,238 additional Bitcoin during the next year.
Metaplanet’s financial statements indicate that the company plans to use a combination of financing options. These include traditional capital raises, the issuance of convertible bonds and potential leveraged positions to maximize their ability to acquire.
The company’s strategy is in line with a broader trend of Japanese companies exploring cryptocurrency investments. This comes as Japanese financial regulators have issued clearer guidelines for corporate crypto holdings.
Recent data show Metaplanet’s share price has closely followed Bitcoin’s price movements. This correlation shows how the company’s fortunes are increasingly tied to the cryptocurrency market.
Market watchers note that Metaplanet’s plan represents one of the most aggressive corporate strategies to buy bitcoin in Asia. The success or failure of this approach could influence other Asian companies considering similar investments.
