Metaplanet reveals net income strategy to fuel Bitcoin accumulation

Japanese investment and Bitcoin treasury company Metaplanet introduced a net interest income strategy on Monday, seeking to invest capital in income-generating assets and use the net interest to fuel its Bitcoin accumulation and dividend payments.

The move is part of the company’s revised capital allocation policy under which 10% to 15% of assets can move into strategic investments, including mergers and acquisitions and interest-generating assets.

Bitcoin (BTC) remains the company’s core treasury reserve asset, accounting for 85% to 90% of total assets, Metaplanet revealed in a Monday notice. The decision aims to enhance the Japanese company’s financing capacity and credit quality to grow its BTC holdings per share through additional acquisitions.

The company revealed the fundraising model in the wake of shareholder concerns about Metaplanet’s governance and complex capital structure. On Friday, Metaplanet issued five corrected securities filings clarifying that CEO Simon Gerovich does not hold majority voting rights in MMX Ventures, a shareholder in Metaplanet.

Metaplanet Notice Regarding Further Revision of Capital Allocation Policy. Source: Metaplanet

In response to the corrections, pseudonymous Metaplanet shareholder Bitcoin Pharaoh urged the company to explicitly name who owns MMX Ventures, clarify the 23.8% stake listed to be indirectly held by Gerovich and to name the two unnamed executives who exercised 18.8 million shares from the Series 10 stock option pool.