Metaplanet's Siiibo Acquisition Fuels Bitcoin-Backed Bond Ambitions

Metaplanet's recent acquisition of Siiibo Securities has sparked a new wave of interest in the company, according to Benchmark. Analyst Mark Palmer says that investors are underestimating the importance of this deal, which could lay the groundwork for a new bitcoin-backed fixed-income market in Japan.

The brokerage, now owned by Metaplanet, has a Type-1 Financial Instrument Business Operator license, allowing it to structure and distribute securities. This type of license normally takes several quarters to obtain from scratch, according to Dylan LeClair. Instead of using the brokerage as a funding channel for its own bitcoin purchases, Metaplanet plans to use it as the foundation for a new market.

Metaplanet's 'Bitbonds' will be tokenized bonds backed by bitcoin, yielding around 4% to 6%. The company aims to eventually move these bonds on-chain with stablecoin settlement and build a secondary market over the next few years. This is part of its 'Project Nova' roadmap, which seeks to expand beyond corporate bitcoin treasuries.

Benchmark maintains its Buy rating and ¥405 price target on Metaplanet's stock, stating that investors are still pricing the company as a passive bitcoin proxy while it prepares to execute on this plan. The firm currently holds 43,000 BTC worth nearly $2.8 billion and is the third-largest publicly traded bitcoin treasury company.