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Metaplanet, Asia’s leading Bitcoin treasury firm, is acquiring Bitcoin at a substantial premium. A May 27 report from 10x Research reveals that Metaplanet’s stock price implies a Bitcoin value of $596,154, over five times its actual market price. This represents a significant overpayment for investors unaware of the firm’s net asset value (NAV). The NAV, calculated by dividing total assets minus liabilities by outstanding shares, reveals the true per-unit price. Investors are essentially paying a fivefold premium for Bitcoin exposure through Metaplanet, without the leverage of direct Bitcoin ownership.
Despite this premium, companies like Metaplanet and MicroStrategy (MSTR) play a crucial role in Bitcoin’s mass adoption. Adam Back, Blockstream’s CEO, views such firms as spearheading “global hyperbitcoinization,” a potential $200 trillion market opportunity. Metaplanet, holding over 7,800 BTC (worth $855 million), is Asia’s largest and the world’s tenth-largest corporate Bitcoin holder, representing 0.037% of the total supply. Their recent $104.6 million purchase of 1,004 BTC on May 19 highlights their aggressive acquisition strategy.
The high premium on Metaplanet’s stock is attracting retail investors despite Bitcoin’s high price discouraging direct participation. Markus Thielen, CEO of 10x Research, notes that retail investors constitute only 7% of the Bitcoin market, a figure that peaked in December 2023. The high entry cost, comparable to a new car’s price, has deterred many.
Other firms also show significant markups. MicroStrategy’s stock implies a Bitcoin price of $174,100. The report highlights that MicroStrategy’s practice of issuing new shares backed by Bitcoin, at a fraction of the stock price, benefits existing shareholders but dilutes the NAV per share for new investors. While existing shareholders benefit, this strategy ultimately increases costs for new investors. The overall trend suggests that despite the premiums, proxy stocks are gaining traction as a method of indirect Bitcoin investment.
