Metaplanet's Aggressive Bitcoin Strategy Hits $2B, Aims for 210,000 BTC by 2027 with $3.6B Stock Plan

Japanese investment firm Metaplanet has officially surpassed $2 billion in Bitcoin holdings, with blockchain analytics platform Arkham Intelligence confirming its treasury holds 17,132 BTC, valued at approximately $2.021 billion as of July 28. This marks a sharp rise from the 12,345 BTC recorded on June 25, when Metaplanet overtook Tesla in corporate Bitcoin reserves.

The rapid accumulation is fueled by an aggressive, debt-and-equity-financed buying strategy. A recent $46.7 million Bitcoin transfer from key investor QCP Capital, part of a larger $92 million purchase, added 780 BTC to Metaplanet's balance sheet in late July. This approach closely mirrors that of MicroStrategy, the world's largest corporate Bitcoin holder.

Despite the growing Bitcoin portfolio, Metaplanet's stock price has struggled, down 25% over the past 30 days and over 40% from its yearly high. This disconnect highlights the leveraged risk of its model, where company shares act as a leveraged play on Bitcoin, exposing shareholders to potential liquidity pressures if Bitcoin's price declines significantly.

In a bold move to accelerate its strategy, Metaplanet filed a shelf registration on August 1 to raise up to 555 billion yen ($3.69 billion) through a two-year issuance of perpetual preferred stock. The proceeds are intended to fund a target of acquiring 210,000 Bitcoin by 2027, which would increase its current holdings more than thirteenfold and position it as one of the largest corporate holders globally, second only to MicroStrategy.

The proposed capital structure involves creating two classes of perpetual preferred stock: Class A shares, functioning like corporate bonds with dividend rates up to 6%, and Class B shares with conversion rights into common stock. An extraordinary general meeting (EGM) scheduled for September 1 will vote on the necessary amendments. The company's trading activity has surged, with June turnover reaching 1.86 trillion yen ($12.65 billion), almost double May's figure, and its shares are up more than 345% year-to-date.

Metaplanet's strategy signals growing institutional appetite for Bitcoin in Japan, positioning the firm as a leading proxy for Bitcoin investment in Asia. However, the ambitious plan carries significant financial risk, as underscored by a class action lawsuit faced by MicroStrategy over its similar Bitcoin investment strategy.