Metaplanet Bitcoin strategy enters the second phase: pledging BTC for cash and acquiring digital banks

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ABMedia
07-09
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As the Japanese version of MicroStrategy, Metaplanet has achieved its Bitcoin reserve target ahead of schedule. The company plans to use BTC as a financial leverage in its second stage, further acquiring digital banks that can generate stable cash flow. With its market value and popularity continuously rising, Metaplanet has become a representative Bitcoin enterprise in the Japanese capital market. Metaplanet's CEO Simon Gerovich recently stated in an interview with the Financial Times that now is the "Bitcoin gold rush era," and companies are accelerating their Bitcoin purchases: "We need to accumulate as many Bitcoins as possible to reach a height that others find difficult to catch up with." Gerovich clarified his goal of holding 210,000 BTC by 2027, which is about 1% of the global total supply. The company currently holds 15,555 BTC, with an average purchase price of $98,582. In just this week, Metaplanet added 2,205 BTC worth $237 million, demonstrating its high confidence in Bitcoin's long-term value. Metaplanet's strategy goes beyond hoarding coins. They plan to use BTC as a leverage tool to acquire cash and conduct physical acquisitions. Gerovich noted that the second stage plan is to use BTC as collateral, similar to government bonds or stocks, to obtain funds for acquiring cash-generating enterprises. With its Bitcoin strategy, Metaplanet's stock price has surged nearly 330% this year, with its market value exceeding 1 trillion yen (about $6.8 billion). Reuters reported that Metaplanet's stock trading volume in June reached 1.87 trillion yen, doubling from May and surpassing giants like Toyota and Sony. From a struggling hospitality business to Japan's version of MicroStrategy, Metaplanet has successfully transformed itself, potentially paving a unique path of crypto financial innovation.

Cryptocurrency investment carries high risks, and its price may fluctuate dramatically. You may lose all of your principal. Please carefully assess the risks.

Trump's media platform Truth Social submitted an application for a "Crypto Blue Chip ETF" to the U.S. Securities and Exchange Commission (SEC) on 7/8, planning to track multiple mainstream cryptocurrencies and target listing on the New York Stock Exchange (NYSE Arca).

Truth Social Submits ETF Application to SEC

According to the registration document, Truth Social stated it will launch an ETF tracking five major cryptocurrencies (BTC, ETH, SOL, CRO, XRP), with the following investment allocations:

This ETF is sponsored by the U.S. asset management company Yorkville America Digital and established as a "business trust" in Nevada. The crypto assets in the ETF will be custodied by designated custodians, and any future adjustments to currencies or proportions must be made through protocol amendments and regulatory approval.

ETF Avoids CFTC Jurisdiction, Targets NYSE Listing

Truth Social noted in the document that this ETF will not be registered as an "investment company" and will not be classified as a "commodity pool", thus not subject to regulation by the U.S. Commodity Futures Trading Commission (CFTC).

The ETF will be issued and redeemed through "authorized participants" in Blocks of 10,000 shares, helping to prevent the ETF price from deviating from cryptocurrency prices.

Truth Social stated that once regulatory review is passed, this ETF is expected to be listed on the NYSE Arca.

Trump Family Actively Expands Crypto Territory, Potential Profiteering Remains to be Observed

Truth Social had already submitted another S-1 document to the SEC on 6/16, primarily applying for an ETF that tracks both BTC and ETH.

This dual-currency ETF is custodied by Crypto.com, with asset allocation of 75% BTC and 25% ETH, aimed at allowing investors to access these two major cryptocurrencies through an ETF. The SEC formally accepted this ETF application on 7/7 and began the review process.

Overall, the Trump family and its affiliated companies are actively expanding their crypto territory, but whether this involves "profiteering" remains to be evaluated by regulatory authorities and the market.

(Trump Media and Crypto.com Collaborate to Create a U.S. Priority ETF, CRO Surges 15% Without Hesitation)

Risk Warning

Cryptocurrency investment carries high risks, and its price may fluctuate dramatically. You may lose all of your principal. Please carefully assess the risks.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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