Metaplanet unveils new income generation approach to boost Bitcoin holdings
The Japanese firm announced an updated capital allocation approach that permits up to 15% of its total assets to be directed toward strategic investments supporting its Bitcoin acquisition strategy.
On Monday, Metaplanet, a Japanese Bitcoin treasury and investment firm, launched a net interest income approach designed to place capital into revenue-producing assets, with the generated net interest earmarked for expanding its Bitcoin reserves and funding dividend distributions.
This initiative represents a component of the firm's updated capital allocation framework that permits between 10% and 15% of its assets to flow into strategic investment opportunities, encompassing both mergers and acquisitions as well as interest-bearing assets.
According to a Monday announcement from Metaplanet, Bitcoin (BTC) continues to serve as the firm's principal treasury reserve asset, representing between 85% and 90% of its total asset base. This strategic direction is designed to strengthen the Japanese firm's ability to secure financing and improve its creditworthiness, ultimately driving growth in its BTC holdings on a per-share basis through further acquisitions.
The fundraising framework was disclosed following shareholder questions regarding Metaplanet's governance practices and intricate capital structure. Last Friday, the company submitted five amended securities documents that made clear CEO Simon Gerovich does not possess majority voting control in MMX Ventures, which is a shareholder in Metaplanet.
Following these amended filings, a pseudonymous Metaplanet shareholder known as Bitcoin Pharaoh called upon the company to provide explicit identification of MMX Ventures' ownership, offer clarification on the 23.8% stake reportedly held indirectly by Gerovich, and disclose the identities of two unnamed executives who acquired 18.8 million shares from the Series 10 stock option allocation.
Either the indirect holding is his, in which case the deleted sentence was closer to the truth, or it is not, in which case the correction is incomplete
Bitcoin Pharaoh
According to Yahoo Finance data, Metaplanet's stock has gained more than 5.6% across the last five trading sessions, reducing a portion of what is currently a 26% year-to-date loss.
Metaplanet reduces Series 10 stock pool by $220 million after shareholder pushback
During early September, company leadership faced shareholder backlash after increasing Metaplanet's Series 10 executive stock option allocation by nearly sevenfold, expanding it from 46 million shares to 319.5 million. While Metaplanet indicated it established the pool at 319.5 million shares on Aug. 18, certain shareholders demanded the cancellation of the 273 million additional potential shares generated through this expansion.
On Sept. 11, the company announced intentions to reduce the stock pool by 41% through a decrease in the number of potential shares associated with the rights by 131.3 million, lowering the total from 319.464 million to 188.19 million by adjusting the conversion ratio from 1:696 down to 1:410, which was the level prior to its September 2025 international share offering.
According to Gerovich, this adjustment eliminated more than $220 million in warrant value while boosting the company's Bitcoin per fully diluted share by approximately 8.8%.
Nonetheless, investment management firm VanEck contended that a substantial portion of the shareholder dilution had already taken place despite the reduction to the stock pool, calling on Metaplanet to reverse the addition of 273 million shares and substitute the remaining rights with a compensation plan approved by shareholders, as stated in a Sept. 18 report.
On Aug. 31, Metaplanet made public that Gerovich had exercised rights enabling him to obtain 92,000 shares from the Series 10 pool. On Aug. 18, the company recognized that increasing the pool "amplifies the dilution borne by existing shareholders."
Important mNAV ratio continues trading at discount
Nearly one year ago, Metaplanet experienced a situation where its enterprise value declined beneath the value of its Bitcoin reserves.
The firm's market to Bitcoin NAV (mNAV), which represents the ratio comparing the company's valuation to its Bitcoin holdings, fell below 1 on Oct. 14, 2025, marking the first recorded instance of this occurrence, based on official data.
As of Monday's trading close in Tokyo, Metaplanet is valued at 0.80x its Bitcoin NAV, indicating that investors are paying $0.80 for each $1 worth of Bitcoin held by the company, based on data from tracking platform Mnav.com.