Metaplanet eyes digital bank acquisition in phase 2 of Bitcoin strategy

Japanese firm Metaplanet plans to eventually use its Bitcoin reserves to acquire cash-generating businesses, including a possible digital bank in Japan.

In a recent interview with the Financial Times, CEO Simon Gerovich said the company is racing to accumulate as much Bitcoin (BTC) as possible before turning its holdings into leverage for expansion.

“We think of it as a Bitcoin gold rush,” Gerovich said. “We need to accumulate as much Bitcoin as we can... to get to a point where we’ve reached escape velocity and it just makes it very difficult for others to catch up.”

The Tokyo-listed firm, originally a hotel operator, started accumulating Bitcoin as a hedge against inflation in 2024. It currently holds 15,555 BTC and aims to boost that figure to over 210,000 by 2027, 1% of all Bitcoin that will ever exist.

Metaplanet to use Bitcoin for acquisitions

Phase two of Metaplanet’s plan involves using Bitcoin as collateral to access financing, similar to securities or government bonds. “We’ll get cash that we can use to buy profitable businesses,” Gerovich said.

Gerovich said Metaplanet’s future acquisitions would ideally align with its strategy, so “maybe it is acquiring a digital bank in Japan and providing digital banking services that are superior to the services that retail now is getting.”

While crypto-backed lending remains rare in traditional banking, some institutions are beginning to explore it. In April, Standard Chartered and OKX launched a pilot program allowing institutions to use crypto and tokenized money market funds as collateral.

Gerovich ruled out issuing convertible debt but is open to preferred shares to fund growth. “I don’t want to have to pay back the money in three, four years’ time and have [repayment] linked to an arbitrary share price,” he said.

Metaplanet resumes buying spree

On Monday, Metaplanet added 2,204 BTC to its reserves for $237 million, with each Bitcoin bought at roughly $107,700. The latest acquisition brings its total holdings to 15,555 BTC at an average purchase price of around $99,985 per coin.

Metaplanet’s stock has climbed over 345% this year, lifting its market cap above $7 billion despite limited revenue. The company mirrors Michael Saylor’s Strategy, which holds over 597,000 BTC and has a $112 billion market cap.