Metaplanet’s Bitcoin ‘premium’ nears $600K per BTC

Metaplanet, a leading Japanese investment firm, showcases a remarkable Bitcoin premium, valuing each coin at nearly $600,000. This represents a more than fivefold premium over the actual Bitcoin price, according to a May 27 report by 10x Research. This significant markup stems from investors’ willingness to pay a premium for exposure to Bitcoin through Metaplanet’s stock, potentially overlooking the implications of net asset value (NAV). The NAV, calculated by dividing a fund’s total assets minus liabilities by outstanding shares, reveals the true per-unit price. Investors unaware of NAV’s significance risk overpaying for their Bitcoin exposure without gaining additional leverage.

Metaplanet’s strategy, aiming to acquire 21,000 BTC by 2026, positions it as a significant player in Bitcoin’s adoption. Currently holding over 7,800 BTC (approximately $855 million), it ranks as Asia’s largest and the world’s tenth-largest corporate Bitcoin holder, representing 0.037% of the total supply. A recent $104.6 million purchase of 1,004 BTC on May 19 underscores its commitment to accumulating Bitcoin.

Despite the substantial premium, proxy stocks like Metaplanet are gaining traction among retail investors. This is partly due to Bitcoin’s high price discouraging direct retail participation. 10x Research CEO Markus Thielen notes that retail participation in the Bitcoin market is only around 7%, peaking in December 2023. Retail investors, he adds, became less engaged when Bitcoin crossed the $45,000 mark.

Other Bitcoin treasury firms also exhibit significant markups. MicroStrategy, for instance, trades at an implied Bitcoin price of $174,100. The report highlights that MicroStrategy’s issuance of new shares backed by Bitcoin, at a fraction of the stock price, generates a profit for the company, framed as Bitcoin yield. While current shareholders benefit, this dilutes the NAV per share over time, a cost borne entirely by new shareholders. The high premiums reflect a combination of factors, including investor demand for Bitcoin exposure and a lack of widespread understanding of NAV’s importance in evaluating such investments.