In a significant move within the digital asset space, Capital Group, a global asset management titan overseeing $2.6 trillion, has substantially increased its stake in Metaplanet Inc., making it the company’s largest shareholder. Between August and September 17, Capital Group boosted its holding from 8.31% to 11.45% through a subsidiary. This investment, valued at approximately $500 million, displaces National Financial Services LLC from the top shareholder position.
This strategic acquisition provides Capital Group with considerable exposure to Bitcoin via what is considered Asia’s most aggressive corporate treasury strategy. The move signals strong institutional confidence in Metaplanet’s Bitcoin-centric business model, even amid recent market volatility.
Stock Weakness Viewed as Entry Point
Metaplanet’s shares have faced significant pressure, declining roughly 40% over the past four weeks. This downturn reflects broader market concerns regarding companies with Bitcoin-heavy treasuries and their high correlation to the volatile cryptocurrency’s price movements.
Despite trading well below its recent peaks, the period of weakness appears to have been seen by Capital Group as a strategic buying opportunity. The massive purchase serves as a powerful endorsement of the company’s long-term strategic direction.
Ambitious Bitcoin Accumulation Strategy
Metaplanet’s current holdings stand at 25,555 Bitcoin, valued at approximately $2.71 billion. This positions the firm as the world’s fifth-largest corporate holder of Bitcoin, trailing only MicroStrategy, which holds 639,835 BTC. The company recently completed its single largest acquisition of the digital asset, purchasing 5,419 BTC for $632 million at an average price of $116,724 per coin.
Should investors sell immediately? Or is it worth buying Metaplanet?
The company’s roadmap outlines clear and ambitious targets:
- Accumulate 30,000 BTC by the end of 2025
- Achieve a long-term goal of 210,000 BTC, representing 1% of the total Bitcoin supply, by 2027
- Establish a Miami-based subsidiary dedicated to Bitcoin derivatives strategies
- Focus on generating recurring revenue from derivatives trading
Analyst Maintains Bullish Stance Despite Sell-Off
Despite the sharp share price decline, Benchmark Equity Research is maintaining its “Buy” rating on Metaplanet. The research firm emphasizes the company’s differentiated approach to Bitcoin treasury management, particularly its focus on generating income through derivatives strategies rather than simply holding the cryptocurrency.
This optimistic analyst perspective stands in stark contrast to the stock’s recent performance, suggesting that Benchmark views the price drop as a temporary market reaction rather than a reflection of a fundamental deterioration in the company’s prospects.
Growing Institutional Validation for Bitcoin Strategies
Capital Group’s investment marks a milestone for the institutional adoption of corporate Bitcoin strategies. Over the past four years, the asset manager has strategically grown its billion-dollar position in Bitcoin-related equities to over $6 billion, with investments in companies like MicroStrategy.
This institutional backing not only bolsters Metaplanet’s credibility but may also pave the way for accessing additional capital for future Bitcoin purchases. The transformation of the former hotel operator into Asia’s leading Bitcoin treasury company, under the leadership of CEO Simon Gerovich, continues to attract significant institutional interest.
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