Latest news with #MetaPlanet
Bloomberg
a day ago
- Business
- Bloomberg
Merryn Talks Money: Bitcoin Treasuries: Inflation Hedge or Hype-Driven Bubble?
You've heard of Bitcoin, but have you heard of 'Bitcoin treasuries?' From Japan's MetaPlanet to UK firms like Coincilium and The Smarter Web Company, 61 publicly listed companies have now adopted the strategy of holding Bitcoin on their balance sheets—not just as a speculative bet, but as a hedge against inflation and a way to lure investors hungry for crypto exposure. In this week's episode of Merryn Talks Money, host Merryn Somerset Webb and Money Distilled author John Stepek are joined by Dominic Frisby, author of The Flying Frisby investment newsletter, to unpack this new strategy and whether the hype is grounded in value or hot air.
Bloomberg
a day ago
- Business
- Bloomberg
Bitcoin Treasuries: Inflation Hedge or Hype-Driven Bubble?
On this episode of Merryn Talks Money, we explore why companies are adding crypto to their balance sheets and what it means for investors. By Save Subscribe to Merryn Talks Money on Apple Podcasts Subscribe to Merryn Talks Money on Spotify You've heard of Bitcoin, but have you heard of 'Bitcoin treasuries?' From Japan's MetaPlanet to UK firms like Coincilium and The Smarter Web Company, 61 publicly listed companies have now adopted the strategy of holding Bitcoin on their balance sheets—not just as a speculative bet, but as a hedge against inflation and a way to lure investors hungry for crypto exposure.
Yahoo
06-06-2025
- Business
- Yahoo
Why more and more companies are buying bitcoin
More corporations are adding bitcoin to their balance sheets, boosting demand. Low-growth firms would be good candidates to follow Strategy's lead, Bernstein said. Here's why bitcoin has turned into a must-have asset for some companies. The bitcoin boom is drawing the attention of more companies, who are following Strategy's lead and piling up the token in their corporate treasuries. A growing list of firms have turned themselves into bitcoin holding companies recently, incorporating the top crypto in their balance sheets along with more traditional assets like cash and bonds. To date, 80 companies have embraced the "bitcoin standard," and they own about 3.4% of the total bitcoin supply, according to a report from Bernstein Research. Many are trying to replicate the success of Strategy, which pioneered the bitcoin treasury strategy and has amassed a trove of around 554,000 bitcoins. The company's stock has outperformed the Magnificent Seven, S&P 500, and its underlying bitcoin holdings in the last 12 months. Following suit, last month, GameStop added $500 million of bitcoin to its balance sheet in its first-ever crypto purchase, and Trump Media & Technology Group announced plans to raise $2.5 billion for a bitcoin treasury. In April, the SPAC Cantor Equity Partners merged crypto firm Twenty One Capital with the goal of becoming a pure-play bitcoin holding company and saw its shares spike nearly 500% in the first week of trading. Bernstein predicts that company demand could drive $330 billion of inflows into bitcoin by 2029, with up to $124 billion of that from Strategy alone. That influx of corporate money would be bullish for bitcoin's price. However, buying bitcoin isn't a one-size-fits-all maneuver, and Strategy's success may be hard to replicate, Bernstein said. Bernstein estimates that around 2,000 global companies with market caps under $100 billion could be prime candidates for bitcoin adoption. These firms share characteristics like low growth (defined as sub-5% yearly revenue growth rate), low leverage, and high cash piles of $100 million or more. Bitcoin could be a lifeline for these types of companies. Firms with poor growth prospects might decide that their cash is better spent on investing in bitcoin than letting it sit on their balance sheet earning minimal returns. A prime example is Japanese hotel-management company turned bitcoin treasury, MetaPlanet. After years of weak profitability and stock-price stagnation, MetaPlanet began purchasing bitcoin in 2024 via cash raised from bond and equity sales. The move paid off, and the stock is up over 500% in the last year. Some larger companies, such as Tesla, have also purchased bitcoin in the past. However, other mega-cap companies have rejected proposals to buy bitcoin. Meta is the latest example, with over 99% of shareholders voting against a bitcoin treasury plan earlier this week. Proposals have also failed at Amazon and Microsoft. Not all businesses will find the same success as Strategy. The business software company has been piling up bitcoin for five years, enticing investors with equity, convertible debt, and preferred stock offerings to fund even more purchases. The stock provides investors with price appreciation, convertible debt offers more capped upside, and preferred stock provides dividend payouts. The company also has the benefit of experience after weathering multiple bitcoin price crashes. MetaPlanet and other treasury companies have issued convertible debt and equity, but Bernstein points out these companies don't have the same scale and ability to raise funds as Strategy. However, as bitcoin popularity skyrockets, it's clear that lack of experience won't stop these companies from taking a page from the Strategy playbook. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
06-06-2025
- Business
- Business Insider
Why more and more companies are buying bitcoin
The bitcoin boom is drawing the attention of more companies, who are following Strategy's lead and piling up the token in their corporate treasuries. A growing list of firms have turned themselves into bitcoin holding companies recently, incorporating the top crypto in their balance sheets along with more traditional assets like cash and bonds. To date, 80 companies have embraced the "bitcoin standard," and they own about 3.4% of the total bitcoin supply, according to a report from Bernstein Research. Many are trying to replicate the success of Strategy, which pioneered the bitcoin treasury strategy and has amassed a trove of around 554,000 bitcoins. The company's stock has outperformed the Magnificent Seven, S&P 500, and its underlying bitcoin holdings in the last 12 months. Following suit, last month, GameStop added $500 million of bitcoin to its balance sheet in its first-ever crypto purchase, and Trump Media & Technology Group announced plans to raise $2.5 billion for a bitcoin treasury. In April, the SPAC Cantor Equity Partners merged crypto firm Twenty One Capital with the goal of becoming a pure-play bitcoin holding company and saw its shares spike nearly 500% in the first week of trading. Bernstein predicts that company demand could drive $330 billion of inflows into bitcoin by 2029, with up to $124 billion of that from Strategy alone. That influx of corporate money would be bullish for bitcoin's price. However, buying bitcoin isn't a one-size-fits-all maneuver, and Strategy's success may be hard to replicate, Bernstein said. Small, low-growth companies are good candidates Bernstein estimates that around 2,000 global companies with market caps under $100 billion could be prime candidates for bitcoin adoption. These firms share characteristics like low growth (defined as sub-5% yearly revenue growth rate), low leverage, and high cash piles of $100 million or more. Bitcoin could be a lifeline for these types of companies. Firms with poor growth prospects might decide that their cash is better spent on investing in bitcoin than letting it sit on their balance sheet earning minimal returns. A prime example is Japanese hotel-management company turned bitcoin treasury, MetaPlanet. After years of weak profitability and stock-price stagnation, MetaPlanet began purchasing bitcoin in 2024 via cash raised from bond and equity sales. The move paid off, and the stock is up over 500% in the last year. Some larger companies, such as Tesla, have also purchased bitcoin in the past. However, other mega-cap companies have rejected proposals to buy bitcoin. Meta is the latest example, with over 99% of shareholders voting against a bitcoin treasury plan earlier this week. Proposals have also failed at Amazon and Microsoft. Can Strategy's strategy be replicated? Not all businesses will find the same success as Strategy. The business software company has been piling up bitcoin for five years, enticing investors with equity, convertible debt, and preferred stock offerings to fund even more purchases. The stock provides investors with price appreciation, convertible debt offers more capped upside, and preferred stock provides dividend payouts. The company also has the benefit of experience after weathering multiple bitcoin price crashes. MetaPlanet and other treasury companies have issued convertible debt and equity, but Bernstein points out these companies don't have the same scale and ability to raise funds as Strategy. However, as bitcoin popularity skyrockets, it's clear that lack of experience won't stop these companies from taking a page from the Strategy playbook.
Yahoo
21-05-2025
- Business
- Yahoo
'Days to Cover mNAV,' Emerges as the New Standard for Evaluating Bitcoin Equities
As bitcoin (BTC) continues to mature as an institutional asset, a growing number of public companies are integrating BTC into their treasuries, sparking renewed investor interest in so-called leveraged bitcoin equities (LBEs). But with valuations soaring, the key question remains: which companies are genuinely earning their premiums through consistent BTC accumulation, and which are simply coasting on reputation? A new metric, 'Days to Cover mNAV,' is emerging as a sharp analytical tool to answer this. It measures how long it would take a company, at its current bitcoin stacking pace, to accumulate enough BTC to justify its market cap, based on its current multiple of net asset value (mNAV) and its daily BTC yield. The formula—Days to Cover = ln(mNAV) / ln(1 + BTC Yield)—accounts for compounding, providing a forward-looking, growth-adjusted view of a company's valuation. The latest data points from an article by Microstrategist paints a revealing picture: Strategy (MSTR), the institutional leader, holds an mNAV of 2.1 but a low daily BTC yield of just 0.12%, resulting in a sluggish 626 days to cover its valuation. In contrast, upstarts MetaPlanet (3350) and The Blockchain Group (ALTBG) are compounding rapidly with 100-day average BTC yields near 1.5%, allowing them to support much higher mNAVs (5.08 and 9.4 respectively) in just 110 and 152 days. In addition, Semler Scientific (SMLR), with an mNAV of 1.5 and a yield of 0.33%, posts a competitive 114 Days to Cover. These figures, reinforced by the 'Days to Cover mNAV' chart from October 2024 to May 2025, show a clear trend: faster accumulators are compressing their coverage times and catching up to more established players. MetaPlanet and ALTBG in particular have seen investor enthusiasm surge as they demonstrate the ability to turn BTC compounding into valuation upside. In a sector defined by speed and volatility, Days to Cover mNAV provides a clear, data-driven lens through which to evaluate long-term sustainability and upside potential. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
