Metaplanet’s Debt Strategy Sparks Investor Concern

Often referred to as Japan’s answer to MicroStrategy, Metaplanet continues to pursue its assertive Bitcoin acquisition policy. The Tokyo-based firm disclosed on November 25 that it is drawing an additional $130 million from its Bitcoin-collateralized credit facility. Despite holding billions in Bitcoin, the company’s shares are trading below their intrinsic value, reflecting growing investor apprehension about its leveraged approach.

Trading closed near 364 yen on Tuesday, maintaining a downward trend. Market participants appear to be assigning greater weight to the hazards of leveraged expansion than to the prospective gains from digital asset holdings.

Initiated on November 21, this latest borrowing increases Metaplanet’s total liabilities to $230 million, Read more...