Tag:

Treasury

Bitmine Becomes 2nd Largest Crypto Treasury Company: Now Holding $6.6B In Ethereum

by admin August 20, 2025

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

BitMine, a publicly traded company renowned for its bold treasury strategy, has officially become the second-largest crypto treasury company in the world. The firm now holds more than $6.6 billion worth of Ethereum (ETH), totaling 1.52 million tokens — a staggering 1.26% of the total ETH supply.

This milestone underscores BitMine’s aggressive accumulation strategy, which has set it apart from other institutions and corporate treasuries in the crypto space. What makes this move even more significant is BitMine’s long-term vision: the company has set a target of holding 5% of Ethereum’s total supply, meaning they are already 25% of the way toward their ambitious goal.

The announcement sends a strong signal to markets and institutional investors. Ethereum’s growing role as both a financial and technological backbone of Web3 is attracting corporations to treat ETH not just as an asset, but as a strategic reserve. BitMine’s approach mirrors the conviction once seen in Bitcoin-focused treasury strategies, but it places Ethereum front and center in the evolving digital asset economy.

BitMine Becomes The Leading Ethereum Treasury

BitMine has cemented its position as the largest Ethereum treasury in the world, now holding over $6.6 billion worth of ETH, up from $4.9 billion just last week. This rapid increase highlights the company’s aggressive accumulation strategy and its conviction in Ethereum’s long-term value. The treasury currently accounts for 1.52 million ETH, making BitMine the undisputed leader in Ethereum corporate holdings.

BitMine Latest Crypto Transactions | Source: Arkham Intelligence

Globally, BitMine now ranks as the second crypto treasury company overall, second only to Michael Saylor’s Strategy, which dominates Bitcoin holdings. This milestone underscores the shifting landscape of institutional crypto adoption, where Ethereum is increasingly being recognized as more than just the leading smart contract platform — it is becoming a core reserve asset.

Notably, BitMine now holds more ETH than Sharplink Gaming, The Ether Machine, and The Ethereum Foundation combined. This marks a turning point in the treasury race, where corporations are no longer competing on Bitcoin alone but are diversifying into Ethereum at unprecedented levels.

This growing trend is likely to continue as ETH gains momentum, supported by strong institutional demand, ETF inflows, and broader adoption across decentralized finance and real-world asset tokenization. Analysts believe that if BitMine maintains its current pace, its treasury strategy could reshape how companies manage long-term reserves in the digital economy.

ETH Facing Critical Test

Ethereum is currently trading near $4,310 after a sharp retrace from its recent peak above $4,790. The chart highlights that ETH has entered a consolidation phase after weeks of strong bullish momentum, with price now testing key support levels.

ETH is trading above key demand levels | Source: ETHUSDT chart on TradingView

The 50-day moving average is trending upward and currently sits near $3,560, well below current price levels, signaling that the broader bullish structure remains intact. Meanwhile, the 100-day and 200-day moving averages at $3,048 and $2,575, respectively, also confirm strong long-term support. This alignment suggests that despite the pullback, Ethereum’s broader trend is still positioned for growth.

If ETH manages to hold this level, a rebound back toward resistance at $4,600–$4,800 is likely in the short term. However, a breakdown below support could open the door for a deeper retrace toward $3,800. The coming sessions will be key to determining direction.

Featured image from Dall-E, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

Source link

August 20, 2025 0 comments

NFT Gaming

Bitcoin Treasury KindlyMD Stock Dives Following $679 Million BTC Buy

by admin August 19, 2025

In brief

Healthcare company KindlyMD said Tuesday that it spent $679 million to buy over 5,743 Bitcoin.
The firm pivoted to a Bitcoin treasury strategy earlier this year when it merged with holding company Nakamoto.
It is the latest company to morph into a crypto treasury.

Bitcoin treasury KindlyMD has added $679 million in BTC to its holdings, the company said Tuesday—though the firm’s stock has taken a plunge following the announcement.

The Nasdaq-listed company said that it had bought 5,743.91 BTC via its wholly owned subsidiary, Nakamoto Holdings, Inc, for an average price of about $118,205 per coin.

Bitcoin was recently trading for $113,200, down 2.4% over a 24-hour period and by more than 5% over the past week after hitting a new all-time high mark above $124,000 last week.

“This acquisition reinforces our conviction in Bitcoin as the ultimate reserve asset for corporations and institutions alike,” David Bailey, the company’s CEO said.

KindlyMD’s stock—which trades under the ticker NAKA—was down by more than 13% Tuesday to a price of $10.41. The firm, which focuses on providing healthcare data, in May announced a merger with holding company Nakamoto.

Nakamoto is a holding company co-founded by Bitcoin Magazine CEO David Bailey with the intent of purchasing Bitcoin. Bailey advised President Donald Trump on crypto policy while the Republican candidate was campaigning last year.

KindlyMD said on Monday that it had closed a $200 million convertible note offering as part of its Bitcoin-buying strategy. It raised another $540 million in August via a private placement in public equity (PIPE) to buy the cryptocurrency.

The move is straight out of Strategy’s playbook: Raise cash to buy Bitcoin so investors can buy shares of a publicly traded company and get regulated exposure to the asset.

Strategy shifted from software development to focus on Bitcoin accumulation in 2020. It is the largest corporate holder of the asset with 629,376 BTC worth over $71 billion.

Some 168 public companies now have Bitcoin treasuries, according to bitcointreasuries.net, holding a total of more than 983,000 Bitcoin.

Some experts have warned that the crypto play has its risks, and that pivoting to crypto won’t necessarily save a failing business. But companies keep popping up, and some are amassing billions of dollars’ worth of digital assets.

Other notable treasuries include Twenty One, started by a combination of crypto and traditional finance powerhouses—Tether, Bitfinex, Cantor Fitzgerald, and SoftBank. It holds 43,500 BTC—almost $5 billion worth as of this writing—although it has yet to begin trading.

Daily Debrief Newsletter

Start every day with the top news stories right now, plus original features, a podcast, videos and more.

Source link

August 19, 2025 0 comments

Crypto Trends

Dutch Firm Amdax To Launch Bitcoin Treasury Company, Eyes 1% Of BTC Supply

by admin August 19, 2025

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Leading Netherlands-based crypto services firm Amdax today announced plans to launch a Bitcoin (BTC) treasury company called AMBTS B.V. (AMBTS), with the goal of listing it on Euronext Amsterdam.

Amdax Unveils Bitcoin Treasury Firm

In a move that underscores the growing trend of European companies embracing Bitcoin strategies, Dutch crypto services provider Amdax revealed it is laying the groundwork for a dedicated Bitcoin treasury company to be listed on Amsterdam’s Euronext stock exchange.

AMBTS will operate as a privately held company with an independent governance structure and a singular focus on BTC accumulation. The company aims to acquire as much as 1% of the total Bitcoin supply, raising capital from private investors in stages to achieve that ambitious target.

At current market prices, holding 1% of Bitcoin’s supply – roughly 210,000 BTC – would require an investment of approximately $24 billion. Presently, only Strategy holds more than 1% of the supply, with 628,946 BTC on its balance sheet.

Amdax emphasized Bitcoin’s low correlation with traditional asset classes as a key driver of institutional interest. The firm noted that persistent inflation, geopolitical instability, and increasing regulatory clarity have strengthened BTC’s appeal, reflected in its recent price performance.

According to Amdax, proceeds from the initial financing round will be used to “make a head start with the BTC accumulation strategy,” which the firm expects will also boost its equity value over time.

For background, Amdax has been operating as a licensed cryptocurrency services provider for more than five years. In 2020, it became the first Dutch crypto company to register with the Dutch Central Bank (DCB). Commenting on the development, Lucas Wensing, CEO of Amdax, said:

While Bitcoin has been the best performing major asset in the past 10 years with fast adoption as digital capital, it is still relatively small in investment portfolios. With now over 10% of BTC supply held by corporations, governments and institutions, we think the time is right to establish a Bitcoin treasury company with the aim to obtain a listing on Euronext Amsterdam.

BTC Adoption In Europe Gaining Momentum

Although European companies were initially hesitant to embrace BTC, many are now warming up to the cryptocurrency. A supportive regulatory environment and growing institutional adoption in the US have contributed to Europe’s shifting stance toward digital assets.

For instance, UK-based firm The Smarter Web Company recently expanded its cryptocurrency holdings to 1,825 BTC after purchasing an additional 225 BTC. Similarly, Satsuma Technology, also based in the UK, raised $135 million to increase its BTC exposure.

Meanwhile, Norway’s sovereign wealth fund disclosed that its indirect BTC exposure rose 192% year-on-year, highlighting the increasing role of BTC in European institutional portfolios. At press time, BTC trades at $116,100, down 1.8% in the past 24 hours.

Bitcoin trades at $116,100 on the daily chart | Source: BTCUSDT on TradingView.com

Featured image from Unsplash.com, chart from TradingView.com

Source link

August 19, 2025 0 comments

GameFi Guides

U.S. Treasury Seeks Public Input on GENIUS Stablecoin Bill

by admin August 19, 2025

The U.S. Treasury has launched a public consultation on the GENIUS Act, a new law that aims to regulate stablecoins, digital dollars with a fixed value, and improve the role of America in global digital finance.

The Treasury is seeking the input of citizens, businesses, and professionals regarding the regulation of stablecoins, including the use of artificial intelligence, blockchain surveillance, digital identity verification, and application programming interfaces (APIs).

Today, Treasury issued a Request for Comment required by the GENIUS Act, which furthers the Administration’s policy of supporting the responsible growth and use of digital assets, as outlined in President Trump’s Executive Order on “Strengthening American Leadership in Digital…

— Treasury Department (@USTreasury) August 18, 2025

These inputs will assist in evaluating the advantages, expenses, privacy threats, and cybersecurity issues of these technologies. The deadline to submit is October 17, 2025, and submissions will be published on regulations.gov.

The GENIUS Act, signed earlier this year on July 18, 2025, creates a clear framework for U.S.-based stablecoin issuers. It builds on the U.S. President Donald Trump’s Executive Order 14178, which also allowed crypto investments in 401(k) retirement plans.

Treasury Secretary Scott Bessent called the law a “win-win-win” for users, issuers, and the government, saying it will expand global access to the U.S. dollar and boost demand for U.S. Treasuries, the bonds backing stablecoins.

Implementing the GENIUS Act is essential to securing American leadership in digital assets.

Stablecoins will expand dollar access for billions across the globe and lead to a surge in demand for U.S. Treasuries, which back stablecoins.

It’s a win-win-win for everyone involved:… https://t.co/p5nRQpBfnw

— Treasury Secretary Scott Bessent (@SecScottBessent) August 18, 2025

Industry leaders have praised the move. Jeremy Allaire, CEO of Circle, a major stablecoin issuer, called it “more than financial legislation,” emphasizing that it shows the U.S. is ready to embrace innovations that make finance safer, more transparent, and inclusive.

He credited policymakers, developers, and Circle’s team for driving the effort and described the law as the “starting gun” for a new era in financial technology.

The GENIUS Act signals that the U.S. is serious about leading in digital assets. By regulating stablecoins, the law aims to make digital dollars secure for billions worldwide while encouraging technological innovation in the financial system.

Public participation now will shape how the law is implemented and how stablecoins grow globally.

Also Read: Banks call for action on GENIUS Act stablecoin yield loophole

Source link

August 19, 2025 0 comments

NFT Gaming

Treasury seeks public input on detection of illicit activity in digital assets

by admin August 19, 2025

The United States Department of the Treasury is seeking public feedback on innovative methods and tools for detecting illicit activity in the digital assets industry.

Summary

U.S. Treasury has asked for public comments on tools used to detect and monitor illicit activity in the digital assets ecosystem.
The public have until October 17, 2025 to share their input as required under the GENIUS Act.

The U.S. Treasury said in a press release that interested members of the public have an opportunity to provide comments on the techniques or strategies that regulated institutions use to detect and mitigate illicit finance risks in the crypto space.

Focus areas of the public input will be on four key aspects of the ecosystem. These are: application programming interfaces, digital identity verification, artificial intelligence, and blockchain technology use and monitoring.

Why public input?

The notice fulfills a requirement under GENIUS Act, the landmark U.S. stablecoin law President Donald Trump signed into law in July 2025. According to the government agency, the public have 60 days from the date of publishing the request for comment notice in the Federal Register to give their input, with this deadline set for October 17, 2025.

Public feedback on this matter helps the administration’s quest for policy that supports responsible growth and use of cryptocurrencies. Treasury’s move aligns with Trump’s executive order on “Strengthening American Leadership in Digital Financial Technology,” signed on January 23, 2025.

“Today’s request for comment fulfills Treasury’s obligation pursuant to section 9(a) of the GENIUS Act, which creates a comprehensive regulatory framework for stablecoin issuers in the United States. The GENIUS Act and E.O. 14178 together promote U.S. leadership in digital assets and bolster U.S. national security,” the U.S. Treasury noted.

The GENIUS Act requires the Treasury to use feedback from the public input to inform its research on aspects such as effectiveness of tools, costs involved, privacy features, and the cybersecurity risks of the tools.

In the cryptocurrency and blockchain security and analytics ecosystem, platforms such as Chainalysis and TRM Labs have become critical components with tools to detect and alert on potential threats and risks.

Source link

August 19, 2025 0 comments

NFT Gaming

U.S. Treasury Starts Work on Stablecoin Law, Gathering Views on Illicit Activity

by admin August 18, 2025

The U.S. Treasury Department is seeking new ideas for detecting and cutting off illicit crypto activity as it begins to put the new stablecoin law into effect.

The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act — the first major U.S. law to erect a regulatory system in the crypto space — called for government action on limiting dangers from bad actors in digital assets, and the Treasury Department is asking for public comments “to identify innovative or novel methods, techniques, or strategies that regulated financial institutions use, or have the potential to use, to detect illicit activity, such as money laundering, involving digital assets.”

The crypto sector will have a 60-day comment window to share industry views on clamping down on shady crypto use, according to the department’s request on Monday.

The GENIUS Act is now entering into what is typically a protracted period of implementation when a new financial-regulation law enters the arena of the federal agencies that need to put it into effect. The U.S. banking regulations, such as the Office of the Comptroller of the Currency and Federal Deposit Insurance Corp. will also have policies to work out in the future oversight of stablecoin issuers.

But GENIUS was only the first and less significant piece of the two-part legislative priority for the crypto industry. The sector still awaits further action from Congress on the bill that would set up guardrails for the wider digital assets markets. The House of Representatives was in the lead in recently passing its Digital Asset Market Clarity Act with a wide bipartisan vote, but when the Senate returns from its summer break, it’ll take the reins in shaping that legislation under a slightly different approach than the House.

President Donald Trump has pushed his administration into rapidly crafting crypto-friendly policies, issuing multiple executive orders and statements driving federal regulators to set standards after years of resistance and legal challenges from the U.S. government. Agency heads such as Securities and Exchange Commission Chairman Paul Atkins have suggested that they can get some of the work done even before Congress finishes its crypto tasks.

Read More: Trump Signs GENIUS Act Into Law, Elevating First Major Crypto Effort to Become Policy

Source link

August 18, 2025 0 comments

Crypto Trends

Bitcoin Treasury KindlyMD Closes $200 Million Raise to Buy More BTC

by admin August 18, 2025

In brief

KindlyMD said it was merging with Nakamoto Holdings to become a Bitcoin treasury back in May.
The company just closed a $200 million convertible note offering.
KindlyMD is the latest firm to pivot to Bitcoin buying as a way to provide better returns for investors.

Bitcoin treasury KindlyMD has closed a $200 million convertible note offering that it will use to buy more BTC, the company announced Monday.

The issuance is the latest step in the company’s strategy to build its BTC holdings and adds to the $540 million that the company raised via a private placement in public equity (PIPE), which closed concurrently as it merged with Nakamoto Holdings. The combine company is retaining the KindlyMD name.

“The Company intends to use the net proceeds from the Convertible Note offering to purchase more Bitcoin, as well as for working capital and general corporate purposes,” KindlyMD said in a statement Friday.

UPDATE: KindlyMD Closes $200 Million Convertible Note Offering. The issuance of the Convertible Note expands our Bitcoin treasury strategy and adds to the $540M gross proceeds from the PIPE Financing.

— Nakamoto (@nakamoto) August 15, 2025

In May, Kindly, which has shifted its focus as a healthcare data provider, and Nakamoto Holdings announced their merger. Nakamoto is a holding company co-founded by Bitcoin Magazine CEO David Bailey, with the intent of purchasing Bitcoin. CEO Bailey advised President Trump on his 2024 crypto policy while the Republican was campaigning.

YA II PN, Ltd., an investment fund managed by hedge fund Yorkville Advisors, is managing the financing.

KindlyMD’s stock, which trades on the Nasdaq under the ticker NAKA, closed about 12% lower on Monday. The idea is that investors will be able to get exposure to the leading cryptocurrency by buying its stock.

A full 168 public companies have Bitcoin treasuries—a move popularized by Michael Saylor’s software firm Strategy, which began purchasing the asset in 2020.

After pivoting from software development, Strategy started buying Bitcoin in August 2020 as a way to generate better returns for its shareholders.

It is the largest corporate holder of the asset with 629,376 BTC worth over $73 billion. It mostly works now to securitize Bitcoin.

Bitcoin was recently trading for $116,605 per coin after dropping 1% over a 24-hour period. It broke a new all-time high last week of $124,128, according to crypto data provider CoinGecko.

Strategy issues debt to fund its purchases. Since Strategy first bought Bitcoin five years ago, its stock (Nasdaq: MSTR) has rocketed up by over 2,700%.

Some of Strategy’s followers are using spare cash to buy the flagship digital currency, while others are issuing debt.

But some experts have warned that the crypto play has its risks.

Other notable treasuries include Twenty One, started by a combination of crypto and traditional finance powerhouses—Tether, Bitfinex, Cantor Fitzgerald, and SoftBank. It holds 43,500 digital coins, although it has yet to begin trading.

Daily Debrief Newsletter

Start every day with the top news stories right now, plus original features, a podcast, videos and more.

Source link

August 18, 2025 0 comments

Crypto Trends

ETHZilla’s NASDAQ relaunch puts $419m Ethereum treasury in the spotlight

by admin August 18, 2025

The rebranded firm, now holding 94,675 ETH, is betting big on Ethereum’s long-term value, with backing from Polychain, Founders Fund, and key DeFi founders.

Summary

ETHZilla debuts on NASDAQ with a $419m Ethereum treasury, rebranding from biotech firm 180 Life Sciences.
Backed by Polychain, Founders Fund, and DeFi leaders, ETHZilla aims to be a major corporate ETH holder.

According to a press release dated August 18, ETHZilla Corporation has officially completed its rebranding and transition from biotech firm 180 Life Sciences to a dedicated Ethereum (ETH) treasury vehicle.

The company’s shares began trading under the new ticker “ETHZ” on the same day, marking a strategic shift toward accumulating and managing one of the largest corporate ETH holdings in public markets.

“Today, we are embracing our identity as ETHZilla and our commitment to developing a market-leading strategy that seeks to bring the value of Ethereum to investors in the public markets,” McAndrew Rudisill, Executive Chairman of the Board of Directors of the Company, said.

With 94,675 ETH acquired at an average price of $3,902 and now worth approximately $419 million, the move signals a growing institutional embrace of Ethereum as a treasury asset.

ETHZilla’s institutional backing and pivot into Ethereum

According to ETHZilla’s announcement, its treasury strategy is designed to leverage Ethereum’s dual role as both a store of value and a yield-generating asset. The company said it has partnered with Electric Capital to maximize returns through staking, DeFi lending, and liquidity provisioning, positioning the firm to benefit from Ethereum’s expanding utility beyond mere price appreciation.

The pivot from biotech to Ethereum treasury management came after ETHZilla raised $565 million in private funding, with backing from over 60 institutional and crypto-native investors.

The list features both a deep bench of both institutional capital and Ethereum-native builders. Polychain Capital, Electric Capital, and Peter Thiel’s Founders Fund anchor the institutional side, while key DeFi founders, including EigenLayer’s Sreeram Kannan, Lido’s Konstantin Lomashuk, and Compound’s Robert Leshner, lend credibility to the venture. Their participation suggests confidence not just in ETHZilla’s model, but in Ethereum’s long-term viability as a cornerstone of decentralized finance.

While ETHZilla’s treasury strategy dominates headlines, the company hasn’t abandoned its roots entirely. The company said its legacy biotech assets remain part of the portfolio, with plans to monetize intellectual property, and its gaming division continues to operate. This diversified approach could provide stability if crypto markets turn volatile, though the firm’s future now hinges on Ethereum’s performance.

Source link

August 18, 2025 0 comments

NFT Gaming

Ethereum Treasury Aims to Foil Short Sellers With ‘Loyalty Payment’ as Shares Trade at Discount to Holdings

by admin August 18, 2025

In brief

BTCS is paying investors a “loyalty payment” to make shares illiquid.
The company’s shares are trading below the value of its crypto holdings.
BTCS CEO Charles Allen said short sellers are targeting the firm.

Ethereum treasury firm BTCS has offered investors a one-time payment for making their shares illiquid on Monday, saying that it would help them foil Wall Street short sellers.

Those who hold BTCS shares with the company’s transfer agent will receive a “loyalty payment” of $0.35 per share in January, the company said in a press release, while unveiling a $0.05 dividend that will be payable in Ethereum in September as well.

BTCS shares rose nearly 9% to $4.81 on Monday, according to Yahoo Finance. Shares have cooled from a three-year high of $8.49 last month but are still up 83.4% year-to-date.

BTCS’ shares trade at a discount relative to its crypto holdings. Although the company held 70,000 ETH worth $303 million on Monday, its market cap stood around $215 million, yielding a so-called mNAV of 0.75, the lowest among firms tracked by Strategic Ethereum Reserve.

Experts say that discounts can spell danger for crypto treasury firms, constraining their ability to raise funds in a way that would increase the amount of crypto they own per share.

BTCS CEO Charles Allen told Decrypt on Monday that the discount stems from hedge funds betting on a drop in BTCS’ stock price, as opposed to a lack of investor confidence in BTCS or its $100 million Ethereum-buying plan unveiled last month.

“People are betting against us,” he said. “If 90% of our shares are held by retail shareholders in four brokerage firms, and those brokerage firms pull all the shares together and loan them out to the short sellers, [then] we have a major problem.”

BTCS’ short interest represented 7.4% of the company’s float, according to Fintel. That was relatively higher than Ethereum treasury firms BitMine Immersion Technologies and SharpLink Gaming, totaling 4% and 6.5% on Monday, respectively.

Allen’s call for investors to move shares to “book entry” with the company’s transfer agent is reminiscent of a scheme devised by GameStop’s community, in which the meme stock’s devotees organized to directly register shares with Computershare.

By registering shares with the company’s transfer agent, investors can effectively restrict how those securities are used. Platforms like Robinhood and Charles Schwab typically allow customers to opt out of stock lending programs, albeit to varying degrees of difficulty.

As BTCS shareholders tap the company’s transfer agent, the hope is that “shares available to borrow are going to get squeezed out,” making it more costly to short the stock, Allen added

BTCS uses an Equity Stock Transfer agent as its record keeper, and Allen acknowledged that there may be drawbacks for certain investors because they can’t readily sell their shares. Processing a transfer may take three to five business days.

Allen noted that BTCS, established in 2013, runs Ethereum validators and a block-building business, in addition to its Ethereum treasury strategy. The company has also leveraged decentralized finance protocols, such as AAVE, to raise capital, he added.

BTCS shareholders have to fill out a form on the company’s website and provide a digital wallet address in order to receive the dividend, dubbed a “Bividend,” in the form of Ethereum. If shareholders take no action, they will receive $0.05 per share through traditional means.

Daily Debrief Newsletter

Start every day with the top news stories right now, plus original features, a podcast, videos and more.

Source link

August 18, 2025 0 comments

GameFi Guides

Metaplanet’s Bitcoin Treasury Swells to 18,888 BTC With Fresh Buy

by admin August 18, 2025

In brief

Metaplanet has bought a further 775 BTC for $93 million to bolster its corporate treasury.
The Japanese firm’s Bitcoin stash is now worth roughly $2.17 billion, despite Bitcoin’s downturn over the weekend.
Analysts told Decrypt that steady buying can tighten liquidity and raise near term volatility.

Metaplanet Inc. bought an additional 775 Bitcoin for $93 million (¥13.733 billion) Monday, lifting the Tokyo-listed firm’s holdings to 18,888 BTC as it extends its Bitcoin treasury program.

The company said the tranche was executed at an average $120,000 (¥17,720,023) per coin, lifting its aggregate cost basis to $1.94 billion (¥284.097 billion) and its overall average purchase price to $102,000 (¥15,041,118) per Bitcoin.

“18,888 BTC. Onward and upward,” Metaplanet President Simon Gerovich tweeted, sharing the announcement.

Hours before the announcement, Gerovich commented that the company hears the “disappointment in the recent pullback” of Bitcoin’s price to just over $115K over the weekend.

“It’s natural to feel that way. But what gives us conviction is the foundation we are building,” Gerovich said.

Metaplanet’s Bitcoin treasury strategy

Metaplanet’s transformation represents one of the most dramatic corporate pivots in recent history. Founded in 2010 as Red Planet Japan, the company operated a pan-Asian budget hotel chain, but the COVID-19 pandemic broke its business model, forcing property closures and resulting in six consecutive years of losses.

By early 2024, the company’s stock languished around $1.32 (¥190), before its adoption of the corporate Bitcoin acquisition playbook originated by Michael Saylor’s Strategy.

Yet the same dynamic isn’t something peculiar to Japan, according to Hank Huang, CEO of Asia-focused quantitative trading firm Kronos Research.

“Metaplanet’s latest buy shows corporate Bitcoin treasuries growing globally, with firms increasingly using BTC as a strategic reserve.” Huang told Decrypt. “At this scale, near-term liquidity could tighten, adding short-term volatility, while also serving as a hedge against fiat currencies. “

Rewards and risks

Huang noted that the primary risk to Metaplanet’s ambitions is volatility, with equity dilution as a secondary factor.

“The biggest risk for corporate Bitcoin treasuries is price volatility, with sharp BTC drops straining balance sheets and confidence,” Huang explained. “Equity dilution is a secondary concern if share-funded purchases don’t see bullish moves in both BTC and stock.”

Equity dilution happens when a company issues new shares, reducing each holder’s stake and weighing on the stock. Despite it, Metaplanet continuously amassed Bitcoin for its balance sheet, announcing plans for a $3.7 billion stock raise earlier this month to buy more.

For other Asian companies, the rules may not be the same.

“It’s hard for all Asian companies to copy Metaplanet’s Bitcoin buying. Asia’s rules vary, and companies face different challenges. No one can easily follow this move,” Jay Jo, senior analyst at Asian quantitative trading firm Tiger Research, told Decrypt.

At Metaplanet’s scale, steady buying can briefly add liquidity, but persistent bids may drain supply and amplify price swings, Jo explained.

“A company’s stock may track Bitcoin closely and often moves more wildly. For example, Strategy’s Beta is 3.78, while Bitcoin’s is normally about 1.5 to 2,” he said.

Too much reliance on Bitcoin price “without steady cash flow” may cause “sudden cash crunches,” Jo said, adding that such factors “puts heavy stress on a company’s financial health.”

Daily Debrief Newsletter

Start every day with the top news stories right now, plus original features, a podcast, videos and more.

Source link

August 18, 2025 0 comments