Latest news with #SimonGerovich
Arabian Post
2 days ago
- Business
- Arabian Post
Metaplanet Chips In with 775-Coin Bitcoin Boost
Metaplanet has acquired an additional 775 Bitcoin in a substantial move that lifts its total holdings to 18,888 BTC, worth around $1.9–2.2 billion. The purchase, executed at an average price near $120,000 per coin and valued at approximately $93 million, underscores the company's continued commitment to a Bitcoin-centric treasury strategy at a time when markets are under pressure. The latest figures reflect a return of over 480 percent year-to-date in BTC yield, positioning the firm as a formidable force among global corporate Bitcoin holders. Metaplanet's CEO, Simon Gerovich, acknowledged market disappointment amid Bitcoin's dip back toward $115,000 but emphasised confidence in the company's strategic foundation and long-term trajectory. The announcement arrives amid a broader pattern of aggressive accumulation. Earlier in the year, Metaplanet purchased 780 BTC for about $92.5 million, bringing its holdings to 17,132 BTC and solidifying its status as Asia's largest corporate Bitcoin holder and the seventh-largest globally. Prior to that, it added 1,005 BTC at roughly $107,601 each, overtaking peers to climb the rankings among corporate treasury holders. ADVERTISEMENT Metaplanet's expansion is part of its ambitious '555 Million Plan,' under which it aims to amass 210,000 BTC—about 1 percent of the total Bitcoin supply—by the end of 2027. The strategy includes issuing significant equity through warrants and share offerings, enabling rapid accumulation while managing shareholder dilution. This pivot to Bitcoin has dramatically altered Metaplanet's trajectory. A company formerly focused on hotel operations has emerged as a pioneering corporate treasury vehicle, mirroring the playbook of the US firm Strategy. CEO Gerovich, once a banker at Goldman Sachs Tokyo, has described the company's strategic focus as a 'Bitcoin gold rush,' envisaging Bitcoin serving as collateral to acquire cash-generating businesses in the future. The firm's bold asset approach has delivered notable returns, with its stock market value surging hundreds of percent this year and its BTC Yield metric demonstrating impressive growth relative to share dilution. At a time when Bitcoin is trading near $115,000 after recently testing highs above $118,000, Metaplanet's latest acquisition exemplifies a strategic bet on long-term appreciation amid short-term volatility. Market observers view its consistent accumulation—regardless of price dips—as a factor that could both tighten liquidity and exacerbate volatility.
Yahoo
2 days ago
- Business
- Yahoo
Metaplanet's Bitcoin Treasury Swells to 18,888 BTC With Fresh Buy
Metaplanet Inc. bought an additional 775 Bitcoin for $93 million (¥13.733 billion) Monday, lifting the Tokyo-listed firm's holdings to 18,888 BTC as it extends its Bitcoin treasury program. The company said the tranche was executed at an average $120,000 (¥17,720,023) per coin, lifting its aggregate cost basis to $1.94 billion (¥284.097 billion) and its overall average purchase price to $102,000 (¥15,041,118) per Bitcoin. '18,888 BTC. Onward and upward,' Metaplanet President Simon Gerovich tweeted, sharing the announcement. Hours before the announcement, Gerovich commented that the company hears the 'disappointment in the recent pullback' of Bitcoin's price to just over $115K over the weekend. 'It's natural to feel that way. But what gives us conviction is the foundation we are building,' Gerovich said. Bitcoin Slip Triggers $300 Million in Liquidations—What's Next? Metaplanet's Bitcoin treasury strategy Metaplanet's transformation represents one of the most dramatic corporate pivots in recent history. Founded in 2010 as Red Planet Japan, the company operated a pan-Asian budget hotel chain, but the COVID-19 pandemic broke its business model, forcing property closures and resulting in six consecutive years of losses. By early 2024, the company's stock languished around $1.32 (¥190), before its adoption of the corporate Bitcoin acquisition playbook originated by Michael Saylor's Strategy. Yet the same dynamic isn't something peculiar to Japan, according to Hank Huang, CEO of Asia-focused quantitative trading firm Kronos Research. 'Metaplanet's latest buy shows corporate Bitcoin treasuries growing globally, with firms increasingly using BTC as a strategic reserve.' Huang told Decrypt. 'At this scale, near-term liquidity could tighten, adding short-term volatility, while also serving as a hedge against fiat currencies. ' Rewards and risks Huang noted that the primary risk to Metaplanet's ambitions is volatility, with equity dilution as a secondary factor. 'The biggest risk for corporate Bitcoin treasuries is price volatility, with sharp BTC drops straining balance sheets and confidence,' Huang explained. 'Equity dilution is a secondary concern if share-funded purchases don't see bullish moves in both BTC and stock.' Equity dilution happens when a company issues new shares, reducing each holder's stake and weighing on the stock. Despite it, Metaplanet continuously amassed Bitcoin for its balance sheet, announcing plans for a $3.7 billion stock raise earlier this month to buy more. Metaplanet Plans $3.7B Stock Raise to Fuel Massive Bitcoin Buying Spree For other Asian companies, the rules may not be the same. 'It's hard for all Asian companies to copy Metaplanet's Bitcoin buying. Asia's rules vary, and companies face different challenges. No one can easily follow this move,' Jay Jo, senior analyst at Asian quantitative trading firm Tiger Research, told Decrypt. At Metaplanet's scale, steady buying can briefly add liquidity, but persistent bids may drain supply and amplify price swings, Jo explained. 'A company's stock may track Bitcoin closely and often moves more wildly. For example, Strategy's Beta is 3.78, while Bitcoin's is normally about 1.5 to 2,' he said. Too much reliance on Bitcoin price 'without steady cash flow' may cause 'sudden cash crunches,' Jo said, adding that such factors 'puts heavy stress on a company's financial health.'
Economic Times
14-07-2025
- Business
- Economic Times
Cryptocurrency Live News & Updates : K33 Expands Bitcoin Holdings with New Acquisition
15 Jul 2025 | 01:10:12 AM IST Bitcoin asset management firm K33 has purchased an additional 36 bitcoins for around 42.8 million Swedish kronor, increasing its total holdings to 121 bitcoins. In recent developments, K33 has bolstered its Bitcoin portfolio with a significant acquisition of 36 bitcoins, reflecting a growing interest in the cryptocurrency market. Meanwhile, Vanguard, traditionally skeptical of crypto, has inadvertently become a major institutional backer of Bitcoin through its holdings in Strategy, despite its ongoing reservations about the asset class. In the Ethereum space, Eric Jackson of EMJ Capital predicts a potential surge in ETH prices, projecting a target of $1.5 million per token as Ethereum evolves into a key financial infrastructure. Additionally, Metaplanet CEO Simon Gerovich is leading a consortium to acquire shares in the Korean firm SGA, aiming to enhance Bitcoin reserves in Asia. Lastly, U.S. banking regulators have issued a statement on the custody of digital assets, clarifying existing rules without introducing new policies, as the industry anticipates further regulatory developments during the U.S. House of Representatives' Crypto Week. These events highlight the dynamic landscape of cryptocurrency investment and regulation, underscoring both institutional interest and the evolving regulatory framework. Show more
Yahoo
14-07-2025
- Business
- Yahoo
Japan's Metaplanet Buys 797 Bitcoin as BTC Breaks Past $120K
Metaplanet, the largest corporate bitcoin (BTC) holder outside North America, has purchased an additional 797 BTC, worth around $96 million, bringing its total bitcoin holdings to 16,352. Simon Gerovich, CEO of the Tokyo-listed hotelier, recently told the FT that the firm aims to leverage these holdings as collateral to finance acquisitions of cash‑generating businesses, particularly in digital financial services. Metaplanet's strategy mirrors the blueprint used by Michael Saylor's Strategy (MSTR): accumulate bitcoin via equity and debt issuance, then use the asset base to secure financing for broader expansion. Metaplanet has already tapped zero‑interest bonds, stock acquisition rights, and U.S. capital markets—including a planned $5 billion injection into its Florida subsidiary—to fund BTC buying and strengthen its treasury in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Arabian Post
14-07-2025
- Business
- Arabian Post
Metaplanet Doubles Bitcoin Holdings with Bold $95m Purchase
Tokyo-listed Metaplanet has bolstered its treasury by buying 797 additional bitcoins, worth approximately $96 million, raising its total holdings to 16,352 BTC—valued near $2 billion—as Bitcoin surged past $120,000. The move mirrors the blueprint of US-based Strategy: leverage equity and debt issuance to accumulate crypto assets, which can then be used as collateral for broader expansion. CEO Simon Gerovich reiterated that Metaplanet intends to use its growing Bitcoin reserves not for trading or liquidation, but to underpin financing for acquisitions in cash-generating sectors—particularly digital banking and financial services. The company plans to tap into traditional financing channels, including zero-interest bonds and preferred-share issuance, while steering clear of convertible debt. This purchase follows a series of substantial bond financings: earlier this month, Metaplanet issued 30 billion yen in zero‑coupon bonds to acquire an additional 1,005 BTC, bringing total holdings to around 13,350 BTC. Industry analysts say Metaplanet now ranks as Asia's largest and the world's fifth-largest corporate Bitcoin holder, outranking companies such as Tesla, Coinbase, and Block Inc.. The firm has set ambitious targets: 100,000 BTC by end‑2026 and 210,000 BTC by end‑2027—accounting for nearly 1% of the global Bitcoin supply. ADVERTISEMENT Boosted by these strategic shifts, the company's market capitalisation surpassed ¥1 trillion, and its stock has climbed more than 345% this year. The pivot, originally a hotel chain, to a Bitcoin treasury vehicle began in 2024 and has drawn parallels to MicroStrategy's transformation into a crypto-centric enterprise. While bitcoin-backed financing is still in its infancy among mainstream banks, select institutions—such as Standard Chartered and OKX—have begun piloting crypto as collateral. Gerovich emphasised that once accumulation reaches 'escape velocity,' Metaplanet's holdings could be leveraged similarly to traditional assets to secure financing for acquisitions. Sceptics voice concerns around volatility and the sustainability of the 'bitcoin yield' model. Veteran short-seller Jim Chanos dismissed these valuations as 'financial gibberish,' yet Gerovich welcomes critics, stating he invites them to short the stock if they are not convinced of the strategy. Metaplanet is exploring acquisitions of digital banks and financial services companies that align with its strategy. The company is also aiming to strengthen its treasury infrastructure through asset-backed financing, including bond issuances, preferred equity deals and a planned $5 billion capital raise targeting expansion into its Florida subsidiary.
