In brief
- Japanese firm Metaplanet has bought 1,005 more Bitcoin for $97 million, lifting its total holdings to 13,350 BTC worth $1.27 billion.
- The company relies on bond issuance and stock rights to fund rapid Bitcoin accumulation, raising concerns over structural fragility.
- Industry observers say the model delivers eye-catching returns but could trigger forced selling and market instability if conditions turn.
Japanese investment firm Metaplanet Inc. added another 1,005 BTC to its expanding Bitcoin treasury, spending $104 million (¥15.6 billion) per Bitcoin as part of its most aggressive monthly acquisition spree yet.
Metaplanet’s latest purchase brings its total Bitcoin holdings to 13,350 BTC, worth approximately $1.27 billion (¥191.3 billion), securing its position as Asia’s most audacious corporate Bitcoin adopter.
The company acquired a massive 46,806 BTC in June alone, more than many nations and institutions hold in their reserves, as per Bitcoin Treasuries data, pushing it closer to its goal of holding 210,000 BTC by 2027.
Metaplanet’s “liquidity flywheel”
The Tokyo-listed firm has engineered what analysts describe as a “liquidity flywheel,” issuing zero-coupon bonds to EVO FUND, then redeeming them early using proceeds from stock acquisition rights exercises.
This approach has enabled rapid BTC accumulation without traditional equity dilution, posting a massive 348.8% year-to-date return.
The strategy has transformed a relatively obscure Japanese firm into one of Bitcoin’s poster children—but industry observers pointed to concerns over potential vulnerabilities.
“Metaplanet’s compressed bond maturity profile can create refinancing vulnerabilities that could lead to a ‘death spiral’ dynamic should short-term obligations during volatile crypto cycles force premature selling,” Benjamin Grolimund, General Manager of UAE operations at Flipster, told Decrypt.
Metaplanet’s relentless Bitcoin accumulation represents the most sophisticated crypto treasury strategy outside Michael Saylor’s Strategy playbook, delivering quarter-to-date yields of 129.4% through an intricate financing mechanism.
Grolimund argued that the strategy behind Metaplanet’s success in bull markets masks dangerous liquidity mismatches that could prove fatal when conditions reverse.
Japan taxes unrealized Bitcoin gains, meaning Metaplanet could face significant tax bills even without selling its BTC, potentially draining cash reserves just as the company leans heavily on debt to fund its buying spree.
Decrypt has reached out to Metaplanet and will update this article should the firm respond.
“Visionary” or “catastrophic”?
The firm has repeatedly tapped bond markets and stock acquisition rights to finance its Bitcoin purchases, redeeming over $200 million (30 billion yen) in debt last month alone. While this has provided short-term liquidity, some warn that the structure is fragile.
“If BTC rises from $100,000 to $160,000, they may owe tax on that $60,000 gain—even without selling,” Lalith Krishnan, Director of Growth and Partnership at Digital South Trust, told Decrypt. “This could lead to huge tax bills without actual cash income.”
“It’s a high-leverage, high-discipline strategy: visionary if it clicks, catastrophic if it slips,” Krishnan added.
Financially distressed companies worldwide, from Spanish coffee chain Vanadi Coffee to Australian biotech Opyl, are adopting Bitcoin treasury strategies as potential lifelines, creating what industry observers say is a dangerously crowded trade.
Grolimund said that while Bitcoin is often promoted as a hedge against risks in traditional finance, the strategy “has not accounted for the liquidity mismatch of bond and Bitcoin.”
He warned that maintaining the flexibility to hold Bitcoin long-term is essential, but forced selling could “create cascading market pressure.”
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