Behind the Pause in Increasing BTC Holdings: Multiple Considerations of Metaplanet

During the market window when Bitcoin’s price has retraced nearly 30% from its all-time high, the world’s largest Bitcoin holding company Strategy announced an almost $1 billion buy-the-dip move. Meanwhile, Metaplanet, dubbed the “Asia version of MicroStrategy,” unexpectedly pressed pause on its additional purchases.

Since completing its last purchase at the end of September 2025, this Japanese-listed company has not increased its Bitcoin holdings for several consecutive weeks. This move starkly contrasts with its previous aggressive accumulation of Bitcoin.

Originally a struggling hotel business that transformed itself, the company now holds over 30,000 Bitcoins, worth approximately $2.75 billion. The decision to pause further accumulation is not simply a strategic wavering but a risk-balanced outcome considering stock price pressure, accounting standards, and financing structure.

1. Industry Background: Strategic Differentiation in the DAT Sector

● As the crypto market enters a retracement window, actions among DAT (Digital Asset Treasury) companies show clear divergence. Industry giant Strategy continues to add during the correction, recently announcing an additional $962.7 million investment to acquire 10,624 BTC.

In contrast, several DAT companies, including Metaplanet, have significantly slowed their pace.

● The entire DAT industry is undergoing severe testing. Data shows that the total market cap of digital asset treasury stocks shrank sharply from $150 billion in Q4 to $73.5 billion, with most companies’ market value to net asset ratios falling below 1.

● Listed in the US and Canada, DAT companies’ stock prices have fallen a median of 43% this year, with some companies dropping over 99%. Analysts warn that Strategy is entering a “Darwinian stage,” where once-flourishing business models are undergoing stress tests.

2. Financial Difficulties: Stock Price Pressure and Accounting Risks

● Metaplanet’s pause in accumulation primarily stems from changes in its own financial indicators. The company’s market value to Bitcoin net asset value ratio once dropped to 0.99, indicating a “break-even” situation.

● Previously, influenced by its Bitcoin holding strategy, Metaplanet’s stock price soared from $20 in April 2024 to a peak of $1,930 in June 2025. Despite a sharp decline of over 70% since then, the overall increase for the year remains over 20%.

● Facing ongoing stock price declines, CEO Simon Gerovich publicly responded to the volatility in early October, emphasizing that fundamentals often diverge from stock prices and reaffirming the company’s commitment to continue accumulating Bitcoin.

● He stated in September that if asset net worth falls below market value, issuing new shares would “mathematically destroy value,” which is detrimental to the company’s Bitcoin yield. This signals potential strategic adjustments. The halt in purchases also aims to mitigate risks posed by Japan’s conservative accounting standards. Data shows that Metaplanet’s average Bitcoin cost basis is approximately $108,000 per BTC.

● Due to Bitcoin’s price retracement, the company has accumulated over $500 million in unrealized losses on its books. To prevent excessive impact on short-term financial statements, the company actively avoids exacerbating this impairment risk.

3. Strategic Upgrades: From Equity Financing to Debt Instrument Innovation

On the surface, the pause in accumulation appears defensive, but in reality, Metaplanet is actively upgrading its capital structure, attempting to build a more sustainable financing “moat.”

● The company’s Q3 financial report shows sales of 2.401 billion yen, up 94% quarter-over-quarter; operating profit of 1.339 billion yen, up 64%. Notably, options business contributed $16.28 million in revenue, a 115% increase, covering daily operations and interest costs.

● Building on this, Metaplanet is trying 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,” with “Mercury” offering a 4.9% yen yield, about ten times the Japanese bank deposit rate. This financing strategy is highly attractive to yield-seeking Japanese investors.

● Meanwhile, Metaplanet continues to advance its debt financing strategy, having raised an additional $130 million to buy more Bitcoin. This loan is part of the company’s $500 million credit line.

Table: Comparison of Metaplanet and Strategy Strategies

4. Domestic Advantages: Unique Opportunities from Japan’s Ecosystem

Despite challenges, Metaplanet still benefits from Japan’s market environment.

● The continuous depreciation of the yen enhances Bitcoin’s role as an inflation hedge. Metaplanet’s Bitcoin reserves provide Japanese investors with an effective way to counteract the yen’s declining purchasing power.

● Additionally, Japan’s tax-exempt status for personal savings accounts has attracted 63,000 domestic shareholders. Compared to the 55% capital gains tax on direct crypto holdings, purchasing Metaplanet shares through this account allows investors to gain Bitcoin exposure indirectly at a lower cost.

● As a result, Metaplanet has gained recognition from international institutions, with Capital Group increasing its stake to 11.45%, becoming the company’s largest shareholder.

● The top five shareholders also include MMXX Capital, Pioneer Navigation, Evolution Capital, and Sequoia Capital. An industry observer notes that companies like Metaplanet must prioritize financial resilience during downturns to sustain long-term accumulation goals.

5. Potential Risks: Index Review and Tax Reform

While long-term benefits for structural health are evident, Metaplanet still faces significant potential risks.

● MSCI index exclusion review affecting Strategy also impacts Metaplanet. It was included in the MSCI Japan Index in February this year. If it is removed due to a high proportion of Bitcoin assets, it could trigger a wave of passive fund sell-offs.

● Another risk stems from potential Japanese tax reforms. Previously, Japanese investors preferred buying crypto concept stocks over direct crypto holdings, partly due to tax differences.

● Japan’s heavy crypto taxation contrasts with more favorable tax treatment for stock investments. However, recent developments indicate that Japan’s Financial Services Agency plans to revise the tax system in 2026, reducing the maximum progressive tax rate on crypto assets from 55% to a flat 20%, aligning with stocks.

● Once implemented, the tax gap between holding spot crypto assets and related concept stocks will narrow significantly, reducing the motivation to bypass holding coins in favor of stocks. This could impact Metaplanet’s stock attractiveness.

6. Future Outlook: Strategic Accumulation and Industry Differentiation

● Overall, Metaplanet’s pause in Bitcoin accumulation is not a sign of strategic failure or market surrender but a strategic buildup based on risk and efficiency considerations. It also marks a maturing phase in the DAT sector, shifting from aggressive accumulation to risk control prioritization.

● Industry experts point out that evaluating DAT companies solely based on market-to-net asset ratios is not entirely accurate, as this valuation method does not fully consider the company’s lifecycle. Looking ahead, the price disparities among treasury companies will become more pronounced, and Metaplanet may be reconstructing its valuation framework.

Table: Key Financial and Strategic Indicators of Metaplanet

Notably, Metaplanet has announced a special shareholders’ meeting on December 22 to discuss a preferred share issuance proposal. The outcome of this meeting will be crucial for the company’s mid- to long-term strategic direction.

As of December 15, Metaplanet’s market cap has surpassed that of Japan’s Kioxia Holdings, soaring nearly 400% in less than two months. Its valuation even exceeds that of chipmaker Screen Holdings and Tokyo Metro, one of the world’s largest subway operators.

The company’s stock price has sharply declined from its all-time high in June but remains well above pre-transformation levels. The market now awaits whether this strategic pause is a temporary defensive measure or the beginning of a long-term strategic shift.