Metaplanet Sets 10% to 15% of Assets for Acquisitions and Income Investments

Metaplanet plans to keep 85% to 90% of its assets allocated to Bitcoin (BTC) and set aside 10% to 15% for acquisitions, income-generating assets and asset management, as the Tokyo-listed company faces governance and compensation scrutiny.

The strategy includes investments in preferred securities, including those issued by Bitcoin treasury companies. Metaplanet aims to earn more on those investments than the cost of the capital used to fund them.

The company ended the third quarter with 44,000 BTC, a net increase of 1,000 BTC. It sold 10,000 BTC for ¥124.7 billion and later spent ¥149.9 billion to buy 11,000 BTC. The transactions were intended to demonstrate that Metaplanet could convert a large Bitcoin position into cash.

The allocation targets leave most of the company’s assets tied to Bitcoin and reserve a smaller portion for income and other strategic investments. Metaplanet’s capital allocation plan previously outlined a similar broad split.

Governance scrutiny has also focused on Metaplanet’s Series 10 stock acquisition rights. In September, CEO Simon Gerovich said the company was adjusting the rights after shareholders raised concerns about the plan’s effects. Independent directors addressed the warrants in a shareholder letter.

Metaplanet also amended disclosures about Gerovich’s relationship to MMXX Ventures, a major shareholder. The amendments prompted questions about ownership and control, but did not establish the identity of the venture’s beneficial owner.

The plan’s eventual income and its effect on Metaplanet’s Bitcoin exposure are still uncertain.