Metaplanet Eyes Digital Bank Acquisition in Bid to Expand Bitcoin Presence

Metaplanet, a Japanese firm, aims to utilize its Bitcoin reserves to acquire businesses that generate cash, including a Japanese digital bank.

The Vision

In a recent interview with the Financial Times, Simon Gerovich, the CEO, mentioned that the company is striving to acquire as much Bitcoin as possible before leveraging its holdings for expansion. They aim to gather as much BTC as possible and reach a point where it will be almost impossible for others to catch up.

As reported by the Financial Times and as mentioned by Gerovich, “We think of it as a Bitcoin gold rush. We need to accumulate as much Bitcoin as we can… to get to a point where we’ve reached escape velocity and it just makes it very difficult for others to catch up.”

Metaplanet, originally a hotel operator, began investing in Bitcoin in 2024 as a hedge against inflation. Since then, they have been aggressively accumulating cryptocurrency, with their current holdings standing at 15,555 BTC. The company’s latest acquisition of 2,204 BTC, valued at approximately $237 million, brings their total holdings to a significant amount. Metaplanet aims to boost its holdings to more than 210,000 by 2027, which is 1% of all Bitcoin that will ever exist.

What Metaplanet Plans

The company’s plan is in two phases. The first phase involves accumulating as much Bitcoin as possible, while the second phase involves using these holdings as collateral to access financing. Gerovich explained that they would use Bitcoin as collateral, similar to securities or government bonds, to get cash to buy profitable businesses.

Metaplanet’s stock has seen a significant surge, climbing over 345% this year and lifting its market cap above $7 billion. Despite limited revenue, the company’s focus on Bitcoin accumulation has driven its stock price up. Gerovich’s strategy centers on utilizing Bitcoin to drive growth, rather than relying on traditional financing methods.

When it comes to funding growth, Gerovich claims to be open to issuing preferred shares but rules out issuing convertible debt. He prefers not to be tied down to arbitrary share prices or repayment schedules. Instead, he aims to use Bitcoin as a lever to drive growth and expansion.

The development of crypto-backed lending is still in its early stages, but some institutions are starting to explore this option. Standard Chartered and OKX have recently launched a pilot program that allows institutions to use cryptocurrency and tokenized money market funds as collateral. Metaplanet’s strategy is at the forefront of this trend.