Metaplanet Expands to US with $15M Miami Bitcoin Subsidiary

Metaplanet, the Tokyo-listed company that has amassed over 20,000 Bitcoin worth approximately $2.3 billion, is establishing a significant foothold in the United States through its newly formed subsidiary, Metaplanet Income Corp. Based in Miami, Florida, the wholly-owned entity will begin operations with $15 million in initial capital, specifically tasked with managing and growing income-generation activities through Bitcoin derivatives. According to the company’s press release, this expansion provides Metaplanet with enhanced opportunities to pursue derivatives operations and related revenue-producing activities, separate from its core treasury management of its substantial Bitcoin holdings.

The choice of Miami as the base for these operations aligns with the city’s growing reputation as a cryptocurrency hub in the United States. This strategic move represents a significant evolution for Metaplanet, which was originally founded in 1999 as a Japanese hotel group managing budget accommodations, including love hotels. The announcement notably makes no mention of hospitality operations, signaling the company’s complete transformation from its traditional business model to a Bitcoin-focused financial enterprise.

Metaplanet’s pivot to Bitcoin derivatives has already demonstrated substantial financial results. In the second quarter of 2024, the company disclosed an operating profit of ¥817 million ($5.5 million) on total sales of ¥1.23 billion ($8.4 million). The driving force behind this performance was Metaplanet’s income-generation segment, which generated ¥1.13 billion ($7.7 million) primarily through the sale of Bitcoin put options. These derivatives contracts become profitable for buyers when Bitcoin’s spot price falls below the option’s predetermined strike price, representing a sophisticated financial strategy that has become central to Metaplanet’s business model.

Metaplanet President Simon Gerovich emphasized the significance of this derivatives business on social media platform X, stating, “This business has become our engine of growth, generating consistent revenue and net income.” The successful implementation of this strategy has fundamentally transformed the company’s revenue streams and positioned it as a unique player in both traditional finance and cryptocurrency markets, leveraging its substantial Bitcoin holdings to generate ongoing income rather than simply holding the digital asset as a treasury reserve.

Despite recent market volatility, Metaplanet’s stock performance reflects both challenges and significant investor confidence. On Wednesday, the company’s shares traded around $4.06, representing a nearly 4% decline for the day. Over the past three months, the stock price has experienced a substantial drop of approximately 68% from its recent high of $12.90. However, when viewed from a year-to-date perspective, shares remain up 74%, indicating strong overall performance despite short-term fluctuations.

This investor confidence was further demonstrated by Metaplanet’s successful completion of a massive $1.45 billion public offering of 385 million shares. According to President Gerovich, more than 70 investors participated in the associated roadshow, including “some of the largest mutual fund complexes, sovereign wealth funds, and hedge funds.” This broad institutional participation, particularly from traditionally conservative investors like sovereign wealth funds, signals strong market belief in Metaplanet’s unique business model and its position as one of the world’s largest corporate Bitcoin holders.

The company’s evolution from a Japanese hotel operator to a major Bitcoin investment and derivatives trading firm represents one of the most dramatic corporate transformations in recent financial history. With its new Miami operations, substantial Bitcoin reserves, and proven derivatives trading capability, Metaplanet is positioning itself as a bridge between traditional finance and the cryptocurrency ecosystem, potentially setting a precedent for other companies seeking to leverage digital assets for revenue generation beyond simple appreciation.