- Metaplanet has acquired 1,005 more Bitcoin for $97 million, bringing its total holdings to 13,350 BTC valued at $1.27 billion.
- The firm’s recent purchases include a large monthly acquisition of 46,806 BTC.
- Metaplanet is funding these purchases through bond issuance and stock rights, raising concerns about potential structural weaknesses.
- Analysts warn the company could face major tax liabilities because Japan taxes unrealized Bitcoin gains.
- Industry experts highlight that the strategy could lead to forced selling and broader market instability if conditions change.
Metaplanet, a Japanese investment company, has continued its aggressive push into cryptocurrency by purchasing an additional 1,005 Bitcoin for $97 million. The acquisition lifts the company’s total Bitcoin holdings to 13,350 BTC, currently valued at $1.27 billion, as part of its ongoing strategy to increase its digital asset reserves.
According to official disclosures, Metaplanet completed its latest Bitcoin purchase at an average price of $104,000 per Bitcoin. In June alone, the firm acquired 46,806 BTC, a figure higher than the reserves held by many countries and institutions based on Bitcoin Treasuries data. The company aims to reach 210,000 BTC by 2027, positioning itself as a major Bitcoin holder in Asia.
The company has developed a financial strategy described as a "liquidity flywheel," which uses zero-coupon bonds issued to EVO FUND and funds gained from exercising stock acquisition rights. This approach enables rapid Bitcoin accumulation without typical equity dilution and has contributed to a significant 348.8% year-to-date return.
Industry observers have raised concerns about the long-term stability of this finance model. Benjamin Grolimund, General Manager at Flipster UAE, told Decrypt, "Metaplanet’s compressed bond maturity profile can create refinancing vulnerabilities that could lead to a ‘death spiral’ dynamic should short-term obligations during volatile crypto cycles force premature selling." Lalith Krishnan of Digital South Trust highlighted tax risks, noting, "If Bitcoin rises from $100,000 to $160,000, they may owe tax on that $60,000 gain—even without selling." This could result in large tax bills despite not generating cash income from asset sales.
Japan requires companies to pay taxes on unrealized gains from Bitcoin, increasing the potential for liquidity pressures as Metaplanet relies on debt to fund purchases. A misalignment between bond obligations and Bitcoin Price movements might put additional financial stress on the firm.
Experts warn that this high-leverage approach, while potentially profitable, exposes Metaplanet to forced asset sales and possible market disruptions if Bitcoin prices drop or if the firm’s financing structures become strained. Other companies facing financial challenges have also begun adopting similar strategies, adding to concerns about the growing risks in this trend.
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