Metaplanet is moving to broaden its Bitcoin strategy beyond simply accumulating the crypto, unveiling a new venture arm and investment initiative aimed at supporting Japan’s emerging Bitcoin infrastructure ecosystem.
Musheer Ahmed, founder and managing director of Finstep Asia, told Decrypt the investment is “relatively small” for Japan’s scale but said it could help “drive more local blockchain startups” to build products and services for the Bitcoin ecosystem beyond basic mining and payments infrastructure.
The expansion is a strategic pivot for a firm grappling with financial strain tied to Bitcoin’s volatility.
The company has spent nearly $3.8 billion accumulating Bitcoin at an average of $107,000 per coin, meaning it is currently sitting on an unrealized loss of around $1.4 billion, or roughly 37% underwater on its holdings.
Ahmed said that “with reliance on Bitcoin for both asset revenue and now also for services-related revenue, Metaplanet is overly dependent on Bitcoin as the single asset class,” noting how venture and asset management businesses could help diversify revenue streams not fully dependent on Bitcoin prices.
Venture investments could help spur the development of “Bitcoin blockchain-based services/products that integrate with TradFi,” which would, in turn, drive greater network usage and potentially boost Bitcoin’s value, Ahmed added.
Ahmed said Metaplanet’s “scale and positioning” could give it an advantage over U.S.-based firms, noting that the company “understands the Asian market well and likely has a strong, highly valued network in the crypto space.”
