Metaplanet Adopts Net Interest Strategy to Boost Bitcoin Holdings

Japanese investment firm Metaplanet has unveiled a new strategy to boost its Bitcoin accumulation by generating net interest income. The company plans to invest capital in income-producing assets and use the resulting net interest to buy more BTC and fund dividend payments. This approach is part of a revised capital allocation policy, which allows 10% to 15% of assets to be directed toward strategic investments, including mergers, acquisitions, and interest-earning assets. Bitcoin will remain the core treasury reserve asset, making up 85% to 90% of total assets.

The strategy comes amid shareholder concerns over Metaplanet’s governance and complex capital structure. Last Friday, the company issued five corrected securities filings to clarify that CEO Simon Gerovich does not hold majority voting rights in MMX Ventures, a shareholder in Metaplanet. Pseudonymous shareholder Bitcoin Pharaoh criticized the corrections, urging the company to disclose the ownership of MMX Ventures and clarify Gerovich’s indirect stake of 23.8%. The shareholder also demanded the identification of two unnamed executives who exercised 18.8 million shares from the Series 10 stock option pool.

Metaplanet’s share price has risen over 5.6% in the past five trading days, partially recovering from a 26% year-to-date decline. The company recently reduced its Series 10 stock pool by 41%, cutting $220 million in warrant value and increasing its Bitcoin per fully diluted share by about 8.8%. However, asset manager VanEck argued that the shareholder dilution had already occurred and urged the company to reverse the additional shares created by the expansion.

Despite these adjustments, Metaplanet’s market to Bitcoin NAV (mNAV) ratio remains at a discount, trading at 0.80x its Bitcoin NAV as of Monday’s close in Tokyo. This means investors pay $0.80 for every $1 of Bitcoin the company owns, according to tracking website Mnav.com.