Metaplanet to use bitcoin as collateral to buy digital bank

• Metaplanet plans acquisitions with bitcoin treasury
• Japanese company targets digital banking and cash flow
• Bitcoin will be used as collateral for expansion

Metaplanet, a Japanese company previously focused on the hotel sector and now recognized for its strong presence in bitcoin, announced plans to use its BTC holdings as collateral in future acquisitions. The company intends to acquire profitable businesses, including a potential digital bank in Japan.

On Monday, Metaplanet revealed the purchase of an additional 2.205 bitcoins for $238,7 million, bringing its total holdings to 15.555 BTC, valued at approximately $1,7 billion. The company now ranks fifth among the largest corporate holders of bitcoin in the world, trailing only the likes of Strategy, MARA, Twenty One and Riot Platforms.

CEO Simon Gerovich has called the current moment a “Bitcoin gold rush.” According to him, the strategy is in a phase of accelerated accumulation of BTC, with the aim of achieving what he called “escape velocity,” making it harder for competitors to reach the same level.

In what is known as “phase two,” Metaplanet plans to borrow bitcoin-backed funds to finance the acquisition of cash-generating companies. Gerovich explained that, as with government bonds, bitcoin could be used as collateral to obtain institutional credit.

“We will get money that we can use to buy profitable businesses, businesses that have cash flow,” the executive said. He indicated that the focus will be on companies that align with the vision of digital financial services, including the possible purchase of a digital bank to offer more effective banking solutions to the retail public.

Despite criticism of the company’s high market value relative to its net worth, Gerovich was blunt: “I encourage people to short our stock if they don’t believe the story.”

Since its change in strategy in April 2024, Metaplanet's market capitalization has surpassed ¥1 trillion (US$6,8 billion), while its shares have risen by more than 318% in the year, reflecting investor interest in the company's bet on bitcoin.