Metaplanet Unveils Strategy to Boost Bitcoin Holdings with Net Interest Income

Metaplanet, a Japanese investment company specializing in Bitcoin treasury management, has unveiled a new strategy to boost its Bitcoin accumulation. The firm announced on Monday a net interest income strategy, which involves investing capital in income-generating assets and using the resulting interest to fuel further Bitcoin purchases and dividend payments. This approach is part of a broader capital allocation policy revision that allows 10% to 15% of assets to be allocated to strategic investments, including mergers, acquisitions, and interest-generating assets.

Bitcoin remains the core asset in Metaplanet's treasury, accounting for 85% to 90% of its total assets. The company aims to enhance its financing capacity and credit quality to grow its Bitcoin holdings per share through additional acquisitions. The new strategy comes amid shareholder concerns about governance and the company's complex capital structure. Metaplanet recently issued five corrected securities filings to clarify CEO Simon Gerovich's voting rights in MMX Ventures, a shareholder in Metaplanet.

Pseudonymous shareholder Bitcoin Pharaoh has urged Metaplanet to provide more transparency regarding ownership of MMX Ventures and other executive holdings. The shareholder's concerns stem from recent filings that revealed Gerovich's indirect stake in MMX Ventures. Metaplanet's stock price has risen over 5.6% in the past five trading days, partially offsetting a 26% year-to-date decline.

The company has also addressed shareholder criticism over the expansion of its Series 10 executive stock option pool. In early September, Metaplanet cut the pool by 41%, reducing the number of potential shares by 131.3 million. However, asset manager VanEck has argued that the dilution has already occurred and urged Metaplanet to reverse the additional shares created by the expansion.