MetaPlanet, a publicly traded Japanese company, is broadening its horizons by establishing Metaplanet Income Corp, a new subsidiary in Miami, USA, focused on derivatives trading and bitcoin revenue generation. This move marks a significant step in the company’s strategic expansion into the global business arena.
Declared by CoinTelegraph, the approval for this new venture was granted during a recent board meeting. The establishment of Metaplanet Income Corp differentiates itself from MetaPlanet’s current bartcoin assets and represents an earnest endeavor to venture into “bitcoin monetization,” a concept that’s been piloted since late last year. Notably, MetaPlanet revealed earlier plans in June to inject $5 billion into expanding its U.S. operations.
Key figures such as CEO Simon Gerovich, along with virtual currency specialists Dylan LeClaire and Darren Winia, are slated to play pivotal roles in Metaplanet Income Corp’s formation and strategic direction. MetaPlanet’s overarching ambition is to become the leading Bitcoin-centric listed company worldwide, capitalizing on a robust Bitcoin strategy.
The COVID-19 pandemic significantly altered MetaPlanet’s business trajectory. Originally centered around hotel and tourism services through its parent company, Red Planet Japan, the drastic hit these sectors took during the pandemic prompted a shift. Inspired by U.S. business strategies, CEO Gerovich launched an aggressive “Bitcoin Intensive Holding and Investment” strategy starting early 2024.
Through diverse funding methods, including stock issuance and interest-free corporate bonds, MetaPlanet has significantly increased its Bitcoin holdings to 21,136, ranking sixth globally among publicly traded companies. The company’s ambitious target is to acquire 210,000 Bitcoin units by 2027—approximately 1% of the total issuance—and to persist in acquisitions without liquidating assets.
Despite these strategic initiatives, MetaPlanet’s stock prices have seen a decline. After peaking at 1985 yen in mid-June, shares have plummeted to 591 yen as of September 15 and closed at 594 yen on the 17th. While experiencing a 66% rise this year, stock prices have experienced a 34% drop over the past month. Market analysts, including those from CoinCentral, suggest that public sales by financial giants like Morgan Stanley and JP Morgan have contributed to this downtrend.
The establishment of Metaplanet Income Corp is a bold venture reflecting MetaPlanet’s adaptive shift in response to market demands and challenges, aiming for substantial growth and positioning within the bitcoin market despite recent financial setbacks.