Metaplanet "breathes" amidst market pressure: From fierce accumulation to strategic considerations

When Bitcoin skyrocketed to $91.82K, the market witnessed an interesting turning point: while MicroStrategy just spent nearly $1 billion to buy more Bitcoin during the correction, Metaplanet—“MicroStrategy’s Asian version”—suddenly “paused” to carefully reconsider. Since late September 2025, this Japanese publicly traded company has not increased its Bitcoin holdings, in stark contrast to the previous image of “continuous accumulation.”

Divergence in the digital asset treasury race

Looking at recent actions, the DAT (Digital Asset Treasury) market is divided into two clear groups. MicroStrategy continues to accelerate—adding another 10,624 Bitcoins at a cost of $962.7 million. Meanwhile, Metaplanet and many other entities are choosing to “ease off,” temporarily halting billion-dollar purchases.

Market data shows that the DAT industry is going through a “Darwinian phase.” The market capitalization of the entire sector has fallen from $150 billion to $73.5 billion in Q4. The stock prices of DAT companies in the US and Canada have median declines of 43%, with some dropping as much as 99%. This figure reflects a reality: holding Bitcoin alone does not guarantee success; financial management and valuation are the real challenges.

Accounting difficulties: When numbers no longer look “pretty”

Metaplanet was once the “golden boy” of the market. Its stock price rose from $20 (April 2024) to a peak of $1,930 (June 2025)—an incredible surge. But then, the price plummeted over 70%, beginning to exert pressure on its accounting figures.

Holding over 30,000 Bitcoins (worth about $2.75 billion), with an average cost of $108,000 per coin—Metaplanet is bearing an unrealized loss of up to $500 million on its books. The market capitalization to net asset value ratio has fallen to 0.99, meaning “breakage”—a warning sign.

CEO Simon Gerovich explained in September: if the company continues issuing shares when its net asset value is below market capitalization, it “will destroy the company’s mathematical value.” That’s when management realized the need to carefully balance the ambition of accumulation with financial health.

Japan’s conservative accounting standards further exacerbate this issue. To avoid risks from Bitcoin price volatility—potentially overly impacting short-term profit and loss statements—the company proactively chose to “step back” and “escape the danger zone.”

Upgrading financial structure rather than “attacking”

Interestingly, the pause is not a sign of “giving up.” Instead, Metaplanet is secretly preparing for a major move—upgrading its entire capital structure.

Q3 reports show revenue reaching 2.401 trillion yen (up 94%), operating profit of 1.339 trillion yen (up 64%). More importantly, the options business segment generated $16.28 million, up 115%—enough to cover operational costs without continuously issuing new shares.

The company is planning to issue preferred shares similar to MicroStrategy (STRC) to raise capital more efficiently. Two new digital credit tools, “Mercury” and “Mars,” are being designed, with Mercury offering a 4.9% yield in yen—10 times higher than Japanese bank deposit rates. This is a perfect bait for domestic investors hungry for profits.

Meanwhile, Metaplanet continues to raise funds through loans. The company borrowed an additional $130 million to buy Bitcoin, within a credit limit of $500 million. This strategy differs from MicroStrategy’s but aligns with Japan’s low-interest environment.

Advantages from “home turf”

Metaplanet is fortunate to have a unique advantage few other DAT companies possess. The continuous weakening of the yen helps Bitcoin become an effective “hedge” against inflation for Japanese investors. The company’s Bitcoin reserves serve as a channel to protect their purchasing power.

Furthermore, Japan’s favorable tax regime for individual savings accounts has helped Metaplanet attract 63,000 domestic shareholders. Compared to the 55% tax rate on direct crypto holdings, buying Metaplanet shares through this account is much cheaper—and this is why Capital Group (with 11.45% stake), Vanguard, Evolution Capital, Invesco, among others, have become major shareholders.

As of December 15, Metaplanet’s market cap surpassed Kioxia Holdings (Japanese memory chip manufacturer), increasing nearly 400% in less than two months. This is a testament to recognition from major international organizations.

Hidden risks ahead

However, not everything is smooth. Metaplanet was once considered for removal from the MSCI Japan index—a risk that MicroStrategy also faces. If Bitcoin’s weight becomes too high, causing the company to be excluded, passive fund sell-offs could trigger a wave of selling.

A greater risk lies in potential tax reforms in Japan. The Financial Services Agency plans to revise crypto taxation in 2026, reducing the tax rate on crypto assets from a progressive 55% to a flat 20%—similar to stocks. If implemented, the tax differential will disappear, significantly reducing the attractiveness of Metaplanet’s shares.

Big decision awaited on 12/22

Metaplanet will hold a special shareholders’ meeting on December 22 to discuss issuing preferred shares. The outcome of this meeting will determine the company’s next strategic direction.

Looking back at Metaplanet’s journey, the decision to pause Bitcoin accumulation is not a strategic failure. Instead, it’s a thoughtful consideration balancing long-term ambitions with short-term financial health. It also marks the maturing of the DAT market, shifting from an “accumulation-focused” era to an era of “intentional risk management.”

The market is waiting to see: is this just a temporary defensive move, or the beginning of a long-term strategic shift? The answer will depend on the decisions Metaplanet announces in the coming weeks.