Metaplanet’s Bitcoin 'premium’ nears $600k per BTC

Japanese investment firm Metaplanet’s Bitcoin premium is almost $600,000 per coin, as Asia’s leading Bitcoin treasury firm pushes forward with its plan to purchase 21,000 BTC by 2026.

Metaplanet’s stockholders are paying a more than fivefold premium on Bitcoin’s (BTC) price when investing in the Japanese company, according to a report by 10x Research published on May 27, which wrote:

“A little-known Japanese stock trades as if Bitcoin were worth $596,154, more than five times its actual price.”

Investors who don’t understand the importance of a firm’s net asset value (NAV) may be “dramatically overpaying for their Bitcoin exposure,” on a position that doesn’t provide additional upside leverage, said the report.

The NAV represents the per-unit price of a fund, calculated by dividing the fund’s total assets minus its liabilities by the number of outstanding shares.

Related: $1M Bitcoin by 2030: Big names predict massive debt-driven BTC rally

Despite the significant premium, Bitcoin treasury firms like Metaplanet and Strategy are important for Bitcoin’s mass adoption, as entities that are front-running “global hyperbitcoinization,” a potential $200 trillion market opportunity, according to Adam Back, co-founder and CEO of Blockstream and the inventor of Hashcash.

Source: Adam BackMetaplanet is Asia’s largest and the world’s 10th-largest corporate Bitcoin holder, with over 7,800 BTC worth $855 million, representing 0.037% of the total supply, Bitbo data shows.

The report comes nearly two weeks after Metaplanet purchased 1,004 BTC for $104.6 million on May 19, marking its second-largest investment to date, Cointelegraph reported.

Largest corporate Bitcoin holders. Source: BitboDespite the fivefold premium, proxy stocks are becoming more attractive to retail investors, as Bitcoin’s high price tag is discouraging direct retail participation, according to 10x Research’s CEO and head of research, Markus Thielen.

“Retail is only like 7% of the Bitcoin market, and that peaked toward December 2023,” Thielen told Cointelegraph, adding that retail investors “tuned out” from Bitcoin when it first crossed the $45,000 mark, which is the average cost of a new car in the US.

Related: Bitcoin’s new highs may have been driven by Japan bond market crisis

Investors are paying a Bitcoin premium due to a lack of education

Other Bitcoin treasury firms are also trading at significant markups compared with spot Bitcoin prices.

Metaplanet, MicroStrategy premium, compared to Bitcoin. Source: 10X ResearchMichael Saylor’s Strategy is currently trading at an implied Bitcoin price of $174,100, a premium which “isn’t extreme but still significant,” wrote the report, adding:

“Every time MicroStrategy issues new shares to retail investors—shares backed by Bitcoin worth only a fraction of the stock price—the company pockets the difference and frames it as Bitcoin yield.”

While existing shareholders “cheer this on,” this may dilute the NAV per share over time, which is a cost “borne entirely by the new shareholders,” added 10X Research’s report.

Magazine: Arthur Hayes $1M Bitcoin tip, altcoins ‘powerful rally’ looms: Hodler’s Digest, May 11 – 17

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