Simon Gerovich, CEO of Metaplanet, stated that Phase 2 of the company's Bitcoin (BTC) strategy will involve using the asset for strategic acquisitions of cash-generating businesses.
He emphasized that it is still early to implement these plans. The company is still in Phase 1 of its strategy with BTC.
In an interview with the Financial Times, Gerovich explained that Phase 1 focuses on accumulating as much Bitcoin as possible. The goal is to reach a point of 'escape velocity'. This represents a stage where the company has accumulated a significant amount of Bitcoin, making it difficult for competitors to catch up.
"Four to six years is probably phase one in this phase of Bitcoin accumulation, and after that, it becomes progressively more difficult," he stated.
In fact, Metaplanet has intensified its Bitcoin purchases this year. The company started its Bitcoin treasury in April 2024. However, it has already become the fifth largest publicly listed cryptocurrency holder.
Additionally, the Japanese (Micro) Strategy increased its positions to 15,555 BTC yesterday, buying 2,205 BTC for approximately $238.7 million. This aligns with its updated goal of holding 1% of the total Bitcoin supply by 2027.
Thus, the company is increasingly focused on building a large stock of Bitcoin, which could be used for financial purposes in Phase 2. At this stage, Bitcoin would be used as collateral to obtain financing.
Bitcoin enables Metaplanet's expansion plan
The company envisions a scenario where banks are likely to treat Bitcoin as traditional financial assets, such as bonds or government securities. This would allow Metaplanet to deposit Bitcoin in these financial institutions to obtain attractive financing options against these Bitcoin holdings.
The funds raised could then be used for acquisitions. The concept is to use Bitcoin not only as a store of value but as an asset to secure financing for business expansion.
"We will obtain money that we can use to buy profitable businesses, businesses that generate cash flow," Gerovich added.
He outlined potential targets, including a digital bank in Japan that offers better digital banking services than existing banks. Additionally, Gerovich emphasized that he would never sell any Bitcoin and plans to continue raising capital to buy more.
Although he is open to issuing preferred shares, he is against the use of convertible debt as Strategy does. He noted that this could create uncertainty regarding repayment linked to fluctuations in stock prices.
Meanwhile, betting on Bitcoin has been beneficial for Metaplanet. Data from Google Finance showed that the stock (3350.T) appreciated 337.76% year-to-date.
Performance of Metaplanet's Stocks. Source: Google Finance
Furthermore, Reuters reported that the stock saw a significant increase in trading volume in June, reaching 1.869 trillion yen. It surpassed major corporations like Toyota and Sony. Since November, the stock has also maintained its leading position in the standard market.
The article Metaplanet uses Bitcoin to finance strategic acquisitions was first seen on BeInCrypto Brazil.
