At about $108,600 per coin, that purchase lifted its average price per BTC to roughly $99,985. Investors have taken notice. The share price is up 340% this year, even though the company still makes only modest revenue.
Japanese microstrategy Metaplanet announced that its Bitcoin strategy has entered the second phase, planning to use BTC as collateral leverage to acquire cash flow businesses. Potential targets include Japanese digital banks, providing digital banking services that are better…
Both companies believe that Bitcoin will outperform cash over the long haul. But Gerovich has ruled out convertible debt. He prefers issuing preferred shares. He doesn’t want to face arbitrary repayments tied to a shifting share price.
Borrowing against Bitcoin carries risks. Banks usually put steep “haircuts” on collateral. If Bitcoin’s price slides, Metaplanet could face margin calls.
Regulators in Japan have yet to fully embrace crypto‑backed lending. That uncertainty could slow down or even halt the plan.
Then there is the challenge of integrating a digital bank. Metaplanet started as a hotel operator. Running a bank requires a very different skill set.
Metaplanet’s gamble is bold. It offers a fresh twist on how companies can use Bitcoin. If all goes well, it could pioneer a new breed of corporate finance.
If things go wrong, this Tokyo firm may struggle under the weight of its own ambition. Either way, its next moves will be watched closely by both crypto bulls and wary bankers.
Featured image from Meta, chart from TradingView
