Bitcoin Proxy Metaplanet Announces New US, Japan Subsidiaries As Stock Slumps

Metaplanet, aka Asia’s MicroStrategy, announces new subsidiaries in the United States and Japan to expand its Bitcoin income generation business, while its stock slumps. These are Metaplanet Income Corp., Bitcoin Japan Inc., and Bitcoin Japan Co. Ltd. It follows the latest ‘silent period’ as the company received the $1.4 billion raised to finalize its international offering.

Bitcoin Treasury Company Metaplanet Discloses Major Plans

Metaplanet, Asia’s largest corporate Bitcoin treasury company, made several announcements on September 17 as its board of directors approved key plans. One of the major developments includes the establishment of a new US subsidiary, Metaplanet Income Corp, to boost its Bitcoin income generation business. It will be a wholly-owned subsidiary of U.S.-based Metaplanet Holdings Inc.

Commenting on the next phase of company’s growth and closing of $1.4 billion raised to buy more Bitcoin, CEO Simon Gerovich said:

Metaplanet Income Corp. in the U.S. to further expand our Bitcoin Income Generation Business. This business has become our engine of growth, generating consistent revenue and net income. We are cash flow positive, producing significant internal cash flow to support future initiatives.

The Bitcoin treasury company also announced the strategic acquisition of the domain “Bitcoin.jp” to strengthen its position in Japan. In addition, the company announced an adjustment of the minimum exercise price for the 20th to 22nd series of stock acquisition rights. It also released Q&A regarding overseas offerings and stock rights.

Metaplanet expanded its total Bitcoin holdings to 20,136 BTC valued at over $2.3 billion after the last purchase of 1,009 BTC worth $112 million.

Stock Remains Under Pressure

Metaplanet stock price fell 1.16% to 594 JPY despite the announcements. The 24-hour low and high were 571 and 614 JPY, respectively. As per Yahoo Finance, the stock price has tumbled 31% in a month, reducing the year-to-date (YTD) return to 71% at the time of writing. This happens as the firm sells its equities to raise funds to buy Bitcoin.

Meanwhile, U.S.-based MTPLF stock has slipped 19% in a week, down nearly 30% in a month. The YTD performance of the stock has declined to 81% amid the accelerated Bitcoin acquisition strategy. As CoinGape reported earlier, financial giants such as Morgan Stanley, UBS, Jefferies, and JPMorgan hold massive short positions in Metaplanet.

Stock prices continue to dip despite a rise in BTC price. Bitcoin jumped more than 6% in a week, with expectations of further upside after a potential Fed rate cut.