Japan’s Bitcoin Treasury Company Metaplanet has not increased its Bitcoin holdings for ten consecutive weeks since September 30, contrasting with MicroStrategy (originally MicroStrategy, now Strategy), which has adopted an aggressive strategy. Is this a risk-controlled adjustment prioritizing safety, or a preparation for larger-scale expansion?
(Previous background: Metaplanet’s stock price plummeted 80%, with “Bitcoin unrealized losses of 16%”, and CEO responded: “Not giving up BTC reserves DAT, continuing long-term accumulation”)
(Additional context: Bloomberg reports Japan exchanges are studying “resisting DAT companies”: reducing chaos like Metaplanet hoarding cryptocurrencies)

Table of Contents

• DAT shifting from aggressive accumulation to risk management priority
• Tactical adjustments under stock price pressure and conservative accounting
• Building an Asian “moat” leveraging low interest rates?
• Domestic advantages and MSCI review
• Conclusion

As the crypto market enters a correction window, actions by Bitcoin treasury companies are showing clear differentiation. The giant Strategy announced last week that it invested 962.7 million USD to buy an additional 10,624 Bitcoins at a price of 90,615 USD each. In contrast, the fourth-largest Bitcoin treasury company, Metaplanet, has come to an abrupt halt. Since September 30, it has not made any new purchases for ten straight weeks.

Metaplanet, a Japanese-listed company hailed by the market as “Asia’s version of MicroStrategy,” was once the most aggressive in the DAT sector. Since launching its reserve plan in April 2024, the company rapidly accumulated over 30,000 Bitcoins, worth approximately 2.75 billion USD.

However, since the fourth quarter, Bitcoin prices have retreated nearly 30% from the all-time high of 126,000 USD. While the market generally expects treasury companies to take advantage of the low prices, Metaplanet unexpectedly paused after its last purchase on September 29, shifting its short-term capital focus toward stock buybacks.

DAT shifting from aggressive accumulation to risk management priority

Data shows that the total market value of digital asset treasury stocks shrank sharply from 150 billion USD to 73.5 billion USD in the fourth quarter, with most companies’ mNAV falling below 1x. According to Bloomberg, the stock prices of US and Canadian-listed crypto asset treasuries (DAT) have fallen sharply this year, with median declines of 43%, and some companies over 99%.

Galaxy warns that Bitcoin treasury companies are entering a “Darwinian stage,” with stock premiums collapsing, leverage turning downward, and DAT stocks trading at discounts. The core mechanisms of their once thriving business models are collapsing.

In this market context, second-tier treasury companies like ETHZilla recently announced an early redemption of convertible bonds totaling 516 million USD. This move is seen as a positive signal to simplify capital structure, enhance financial flexibility, and reduce the risk of high-interest debt during market downturns.

Metaplanet’s actions echo these developments. Currently, the company has 304 million USD in outstanding debt. Theoretically, its Bitcoin assets, valued at 9 times the debt, provide security for repayment. Yet, it still chose to pause its purchases, aligning with the industry trend of shifting from aggressive accumulation toward risk management.

Stock price pressure and tactical adjustments under conservative accounting

Previously, influenced by its Bitcoin holding strategy, Metaplanet’s stock soared from 20 USD in April 2024 to a peak of 1,930 USD in June 2025. Despite a sharp decline of over 70% since mid-year, the stock still gained more than 20% overall this year, stabilizing around 420 USD, with a total market cap of about 3 billion USD.

In response to ongoing stock price declines, CEO Simon Gerovich publicly addressed volatility on October 2, citing Amazon’s case during the dot-com bubble, emphasizing that fundamentals and stock prices often diverge, and reaffirming the company’s continued Bitcoin accumulation.

He had previously stated in September that if net asset value (NAV) (below 1x), further issuance of new shares would mathematically “destroy value,” which is unfavorable for BTC returns. The company would prioritize evaluating preferred stock and share repurchase plans.

Thus, when it faced a NAV breach in early October, Metaplanet quickly took action: authorized repurchasing up to 150 million shares with a 500 million USD credit line, then raised 100 million USD by collateralizing Bitcoin assets for more Bitcoin purchases and expanding income-generating operations and share buybacks. Some funds will also go toward profit-making businesses. The company’s mNAV has since rebounded above 1x.

This behavior—pausing accumulation—serves as a tactical safeguard for its stock price and asset health, prioritizing existing shareholders’ value rather than blindly expanding the balance sheet.

Additionally, halting purchases helps avoid risks posed by Japan’s conservative accounting standards. Given an average Bitcoin cost basis of about 108,000 USD, the company has accumulated unrealized losses exceeding 500 million USD on paper. To prevent excessive short-term profit impact, it actively avoids exacerbating this paper impairment risk.

Building an Asian “moat” by leveraging low interest rates?

On the surface, the pause in accumulation appears defensive. In reality, Metaplanet’s true strategic intent may lie in upgrading and innovating its capital structure.

The third-quarter financial report shows sales of 2.401 billion JPY, up 94% quarter-over-quarter; operating profit of 1.339 billion JPY, up 64%; net profit of 127 billion JPY; net assets of 532.9 billion JPY, up 165%. Notably, option-related business contributed 16.28 million USD, up 115% YoY, covering daily operations and interest costs.

Building on this, Metaplanet is also attempting to emulate Strategy by planning to issue preferred shares similar to STRC to raise capital more efficiently.

The company plans to launch two new digital credit tools, “Mercury” and “Mars.” “Mercury” will offer a 4.9% daily yen yield—about ten times the Bank of Japan’s deposit rate—with 73% of funds designated for Bitcoin accumulation, including 107 million USD direct purchases and 12 million USD in options trading. This approach allows the company to bypass equity dilution, shifting toward low-cost debt leverage, which is highly attractive to domestic investors.

Furthermore, Japan’s market restrictions prevent mechanisms like (BitMine ATM mode) that enable listed companies to sell stocks “in real-time” on the secondary market, protecting investors from dilution shocks. Metaplanet employs the move-to-exercise warrant mechanism (MSW), cleverly bypassing this restriction while maintaining flexible fundraising advantages.

MSW is essentially a special stock repurchase warrant with a dynamic exercise price, not fixed. Typically, every few trading days (early series of Metaplanet, every 3 trading days), the exercise price resets to the average closing price of the previous days, e.g., a simple moving average of the past three days. When warrant holders exercise, the company issues new common shares at close to current market prices to raise funds.

Later, the mechanism may be integrated into the perpetual preferred stock product Mercury: preferred shareholders can convert into common shares based on dynamic pricing via MSW-like terms, making financing smoother and more controllable.

Meanwhile, MicroStrategy Chairman Michael Saylor has confirmed that the company will not launch similar products in Japan within the next 12 months, giving Metaplanet a valuable 12-month first-mover advantage.

The company successfully issued 150 million USD of Class B perpetual preferred stock on November 20, marking the start of its financing strategy. These actions show that Metaplanet is leveraging Japan’s low interest rate environment to build a unique financing “moat,” enabling structured and sustainable expansion.

Domestic advantages and MSCI review

In fact, Metaplanet’s core value lies in the unique alpha provided by Japan’s ecosystem:

On one hand, the continuous depreciation of the yen reinforces Bitcoin’s role as an inflation hedge. Metaplanet’s Bitcoin reserves provide Japanese investors an effective way to counteract the declining purchasing power of the yen.

On the other hand, the tax advantages of Japan’s NISA accounts have attracted 63,000 domestic shareholders. Compared to the 55% capital gains tax on directly holding crypto assets, buying Metaplanet shares through NISA allows investors to indirectly hold BTC positions at a lower cost.

As a result, Metaplanet has gained recognition from international institutions. Capital Group increased its stake to 11.45%, becoming its largest shareholder. The top five shareholders also include MMXX Capital, Pioneer Leadership (Vanguard), Evolution Capital, and Invesco. Additionally, Syz Capital partner Richard Byworth publicly disclosed divesting from MicroStrategy and Bitcoin ETFs to invest in Metaplanet, believing that the latter has lower financing costs and higher return flexibility.

An industry observer pointed out that companies like Metaplanet must prioritize financial resilience during downturns to maintain long-term accumulation goals.

However, despite the long-term benefits for structural health, Metaplanet still faces potential short-term pressure. For example, the MSCI index exclusion review affecting Strategy this time also impacts Metaplanet. It was included in the MSCI Japan Index in February this year; if it is excluded due to a high proportion of Bitcoin assets, it could trigger passive fund sell-offs.

Conclusion

Overall, Metaplanet’s pause in Bitcoin accumulation is not a sign of strategic failure or market surrender. It can be viewed as a strategic pause based on risk and efficiency considerations, also indicating that the DAT track is maturing—from aggressive accumulation to risk control priority.

Bitwise Chief Investment Officer Matt Hougan once said that evaluating DAT companies based on mNAV is incorrect, as this valuation method does not consider the company’s life cycle. Most of the discount on DAT is certain, while premiums tend to be uncertain. Looking ahead, the valuation gaps among treasury companies will become more pronounced. Metaplanet may be restructuring its valuation framework.

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