Metaplanet Expands Bitcoin Strategy Amid Stock Dip
Metaplanet Announces US and Japan Subsidiaries
Metaplanet, the corporate Bitcoin treasury company often called Asia’s MicroStrategy, is pushing forward with its Bitcoin accumulation strategy. The company recently announced the formation of new subsidiaries in both the United States and Japan, aiming to bolster its Bitcoin income generation business. This expansion comes despite a recent slump in Metaplanet's stock price.
The newly established entities include Metaplanet Income Corp. in the U.S., as well as Bitcoin Japan Inc., and Bitcoin Japan Co. Ltd. These moves follow the completion of a $1.4 billion international offering.
Strategic Expansion Details
On September 17, Metaplanet's board of directors greenlit several key initiatives, with the U.S. subsidiary playing a central role in their plans. Metaplanet Income Corp. will operate as a wholly-owned subsidiary of U.S.-based Metaplanet Holdings Inc.
CEO Simon Gerovich commented on the company’s growth strategy, stating that the expansion, fueled by the recent $1.4 billion capital raise, will allow Metaplanet to further expand its Bitcoin income generation business. He emphasized that this operation has become a key driver of revenue and net income for the firm.
Additional strategic moves include the acquisition of the Bitcoin.jp domain, aimed at strengthening Metaplanet’s presence in the Japanese market. The company also adjusted the minimum exercise price for several series of stock acquisition rights.
Metaplanet currently holds 20,136 BTC, valued at over $2.3 billion, following a recent purchase of 1,009 BTC.
Stock Performance Under Pressure
Despite the bullish moves in expanding its Bitcoin strategy, Metaplanet's stock has faced headwinds. The stock price has fallen 1.16% to 594 JPY. Over the past month, the stock has tumbled 31%, reducing its year-to-date (YTD) return to 71%. The U.S.-listed MTPLF stock has experienced similar pressure, slipping 19% in the past week and nearly 30% over the month.
Notably, several financial institutions, including Morgan Stanley, UBS, Jefferies, and JPMorgan, hold short positions in Metaplanet.
Interestingly, this stock decline occurs despite a recent increase in the price of Bitcoin, which has jumped over 6% in the past week.