Metaplanet Unveils Strategy to Boost Bitcoin Holdings with Net Interest Income
Metaplanet, a Japanese investment firm with a Bitcoin-focused treasury strategy, has unveiled a new plan to boost its BTC holdings. On Monday, the company announced a net interest income strategy, aiming to invest in income-generating assets and use the proceeds to accumulate more Bitcoin 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-bearing assets. Bitcoin will remain the core treasury reserve, making up 85% to 90% of total assets.
The strategy comes amid shareholder concerns over governance and capital structure. Metaplanet recently issued corrected securities filings clarifying that CEO Simon Gerovich does not hold majority voting rights in MMX Ventures, a shareholder in Metaplanet. Pseudonymous shareholder Bitcoin Pharaoh called for further transparency, urging the company to name the owners of MMX Ventures and clarify Gerovich’s indirect stake. Metaplanet’s share price has risen over 5.6% in the past five trading days, though it remains down 26% year-to-date.
In early September, Metaplanet faced criticism for expanding its Series 10 stock option pool nearly sevenfold. The company later reduced the pool by 41%, cutting $220 million in warrant value and increasing Bitcoin per fully diluted share by about 8.8%. However, asset manager VanEck argued that the dilution had already occurred and pushed for a reversal of the additional shares. Gerovich exercised rights to acquire 92,000 shares under the Series 10 pool, acknowledging the dilution impact on existing shareholders.
Metaplanet’s market to Bitcoin NAV (mNAV) ratio remains below 1, indicating the company trades at a discount. At Monday’s close in Tokyo, the mNAV stood at 0.80x, meaning investors pay $0.80 for every $1 of Bitcoin the company owns. An mNAV below 1 makes it harder to raise capital and issue new shares to buy more cryptocurrency.