Metaplanet, often referred to as 'Asia's MicroStrategy,' has announced the establishment of two new subsidiaries: Metaplanet Income Corp. in Miami, USA, and Bitcoin Japan Inc. in Tokyo. This strategic expansion follows a substantial $1.4 billion capital raise aimed at bolstering its Bitcoin acquisition strategy and diversifying its operations beyond mere treasury holdings.
The U.S. subsidiary, with an initial capital commitment of $15 million, will focus on generating Bitcoin-related income through derivatives and other financial activities, operating under Metaplanet Holdings. CEO Simon Gerovich emphasized that this move separates income generation from treasury holdings to improve governance and risk management. Meanwhile, the Japan subsidiary, capitalized at 10 million yen, will concentrate on promoting Bitcoin adoption through education, media (managing Bitcoin.jp and Bitcoin Magazine Japan), and events like the Bitcoin Japan Conference.
Despite these ambitious plans, Metaplanet's stock has faced significant volatility, declining 1.16% to 594 JPY on the announcement day and 31% over the past month. This downturn is attributed to substantial short selling by major institutions and the company's strategy of selling equities to fund Bitcoin acquisitions, even as Bitcoin's value rises. The company aims to accumulate 100,000 BTC by 2026, positioning itself as a key Bitcoin proxy in Asia, though it faces risks from market volatility and regulatory scrutiny.