Capital Group Becomes Largest Shareholder in Metaplanet, Betting Big on Bitcoin Treasury
Capital Group has acquired an 11.45% stake in Metaplanet Inc., a Japanese company, making it the largest shareholder. The investment, valued at nearly $500 million, was made through its subsidiary, Capital Research and Management Company. This move signifies a significant bet on Bitcoin through Asia's aggressive corporate treasury strategy.
Wall Street Giant's Bitcoin Play
The investment gives the $2.6 trillion asset management giant considerable exposure to Bitcoin. Metaplanet currently holds 25,555 Bitcoin, worth approximately $2.71 billion, placing it as the fifth-largest corporate Bitcoin holder globally, behind MicroStrategy's 639,835 BTC.
Metaplanet, listed in Tokyo, has transitioned from a struggling hotel operator into a prominent Bitcoin treasury firm under the guidance of CEO Simon Gerovich. Capital Group's ownership increased from 8.31% in August to 11.39% by September 17, exceeding the stake held by the previous largest shareholder, National Financial Services LLC.
Strategic Timing and Investment Approach
This increased stake coincides with Metaplanet's recent $632 million purchase of 5,419 Bitcoin coins at an average price of $116,724. This investment highlights Capital Group's deliberate strategy of gaining crypto exposure through equity stakes in companies focused on Bitcoin rather than through direct Bitcoin purchases.
Previously, Capital Group established positions in MicroStrategy and other companies aligned with Bitcoin, increasing its crypto-related investments from $1 billion to over $6 billion under the direction of portfolio manager Mark Casey. Founded in 1931, Capital Group has historically adopted a conservative approach to investments while managing American Funds and catering to institutional clients globally.
Metaplanet's Ambitious Bitcoin Strategy
Metaplanet has implemented Japan’s most ambitious corporate Bitcoin strategy, growing its holdings from 4,525 BTC in April to over 25,000 BTC presently, achieved through aggressive fundraising. Their "555 Million Plan" aims to accumulate 210,000 BTC by 2027, representing around 1% of the total Bitcoin supply.
Recent funding activities include a $1.45 billion international share offering, completed earlier this month, which issued 385 million shares to finance additional Bitcoin acquisitions. Eric Trump joined the company’s advisory board in March and attended shareholder meetings held earlier this month to show support for the Bitcoin-focused strategy.
Exceptional Returns and Shareholder Growth
This transformation has yielded significant returns, with Metaplanet reporting a 395.1% Bitcoin yield year-to-date. This performance makes Metaplanet the top-performing stock among Japan’s 55,000 publicly listed companies in 2024. The shareholder base has also experienced substantial growth, surging over 1,000% to reach 128,000 individuals.
