Latest news with #Metaplanet
Yahoo
a day ago
- Business
- Yahoo
Trump Media becomes fifth largest Bitcoin treasury company amid $2bn splurge
Trump Media is now a Bitcoin whale. On Monday, Trump Media, the parent company behind US President Donald Trump's social platforms, announced the purchase of a massive $2 billion worth of Bitcoin, officially joining the expanding list of corporate Bitcoin holders. The investment outlay means the company deployed into Bitcoin most of the $2.5 billion it raised earlier in the year from stocks and convertible note sales. The choice, the company's CEO Devin Nunes said, is not just about returns — it's about freedom. 'These assets help ensure our company's financial freedom, help protect us against discrimination by financial institutions, and will create synergies with the utility token we're planning to introduce across the Truth Social ecosphere,' Devin Nunes, Trump Media's CEO, said in the announcement. The size of the investment outlay puts Trump Media in rarefied air: it's now the fifth-largest public holder of Bitcoin, ahead of Japanese firm Metaplanet's roughly $1.9 billion stash. The investment follows a booming trend: dozens of companies are now loading up on Bitcoin as a reserve asset. Some companies have even turned their attention to cryptocurrencies like Ethereum, Solana, and XRP. Pioneers like Michael Saylor's Strategy and Metaplanet have proven that the model can supercharge a company's share price and attract investors, effectively turning a company's stock into Bitcoin exchange-traded fund proxies. Strategy's share price has risen 12-fold in the five years since the company began stockpiling Bitcoin. It now holds about $72 billion worth of Bitcoin, the most by any publicly-traded company. But not every Saylor copycat has been successful. Semler Scientific, a biotech firm, adopted a Bitcoin reserve strategy in May 2024. It's the 14th-biggest corporate holder with over $570 million worth of Bitcoin. But its share price is down 26% this year. The culprit? NAV, or net asset value, which for a Bitcoin reserve strategy company measures the value of the holdings against its share price. Because these companies sell their shares at a premium to fund their Bitcoin buys, the stock value becomes tied to an inflated price of Bitcoin, investment manager Jim Chanos said in May. Metaplanet's stock, for instance, is valued by investors at almost seven times the market price of Bitcoin, according to analysts at 10x Research. For now, Trump Media is up 5% following Monday's announcement, while Bitcoin is trading at $118,000. Osato Avan-Nomayo is our Nigeria-based DeFi correspondent. He covers DeFi and tech. Got a tip? Please contact him at osato@ Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
Why famed short seller Jim Chanos is warning Bitcoin treasury companies of SPAC-style risk
Jim Chanos has seen this movie before — and he says it doesn't end well. The legendary short seller that called the 2001 Enron bankruptcy is now sounding the alarm on the booming market for corporate Bitcoin treasuries. Chanos is comparing it to the SPAC mania of 2021 that raised $90 billion in just three months before crashing spectacularly. Only this time, it's public companies issuing convertible notes and preferred shares to buy Bitcoin — and not much else. 'We are seeing SPAC-like 2021 numbers in the Bitcoin treasury market right now,' Chanos said on the Bitcoin Fundamentals podcast this week, adding that there are reasonably large announcements every day now — 'hundreds and hundreds of millions of dollars a night.' It shouldn't be a surprise that Bitcoin treasuries have become all the rage. Since Michael Saylor adopted the scheme for his firm, now-called Strategy, the company's stock has soared more than tenfold. That success has brought in a deluge of other companies that want to mirror the model — and reap the same returns. Some, like former budget hotel operator Metaplanet, scrapped its previous business model in favour of a Bitcoin treasury scheme. Its market capitalisation has ballooned to $6 billion from $13 million in one year. SPAC boom and bust Chanos's warning is warranted. SPACs — those blank-check companies that exploded in 2020 and early 2021 — raised $90 billion in just 90 days at the height of the craze. They promised easy exits, moonshot mergers, and infinite upside. Instead, they delivered one of the most brutal post-hype collapses in modern market history. Indeed, many of them tanked. Electric truck startup Lordstown Motors went public via SPAC, hyped a futuristic factory, only to declare bankruptcy in 2023. Its stock dropped more than 98%. Hydrogen truck play Nikola rocketed on nothing more than a rolling prototype and a catchy narrative. The founder was later convicted of fraud. Shares are down over 95% from their peak. By mid-2022, the De-SPAC Index, which tracks companies post-merger, had cratered more than 75%. 'Me too' trades Chanos, who's shorting the premium between Strategy's stock and its underlying Bitcoin holdings — to then go long on Bitcoin — says capital markets are being flooded with 'me-too' Bitcoin trades. 'Now we have to bring in what's also new in the past handful of months in 2025, and that is the proliferation of me-too strategies,' Chanos said. 'I believe it's over 130 companies already — and growing.' Collectively, 154 public companies control about 863,298 Bitcoin worth around $102 billion. According to 26 firms have become Bitcoin treasuries in the past 30 days. Financial engineering Just as SPACs were built on cheap capital, investor euphoria, and zero business fundamentals, the new wave of Bitcoin treasury companies are being built on clever financial engineering schemes. One example is Strategy's preferred shares. Michael Saylor raised over $1 billion through this model just a few months ago. Preferred stock lands in between debt and common equity. Similar to bonds, preferred shares usually pay a fixed dividend and tend to be considered less risky than common stock. Whereas debt comes with a maturity date — the day when a loan has to be paid — preferred stock does not. Holders of preferred shares usually don't get voting rights, but they do have priority over common shareholders when it comes to dividends. And since preferred stock never matures, Strategy has no need to repay the principal, nor does it face the same refinancing or liquidation risk as it would with traditional debt. For Chanos, it's 'complete financial gibberish.' And just like the SPACs, he warns, it could all implode once the money dries up or sentiment turns. Pedro Solimano is DL News' Buenos Aires-based markets correspondent. Got at a tip? Email atpsolimano@ 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
Yahoo
5 days ago
- Business
- Yahoo
Trump's Crypto Insider Just Turned $1 Million Into $100 Million -- And He's Not Done Yet
David Bailey the crypto insider who helped flip Donald Trump into a Bitcoin (BTC-USD) backer just pulled off one of the most aggressive plays in crypto investing. His hedge fund, 210k Capital, notched a 640% return over the past 12 months by backing small public companies that pivoted into Bitcoin holdings. Instead of chasing Bitcoin (or ETFs) directly, Bailey and his team have turned companies in sectors as far-flung as hospitality and web design into Bitcoin treasury vehicles. One example: UK-based Smarter Web, whose stock jumped roughly 14,000% after the shift. 210k Capital now manages $433 million, up from $44 million before the strategy caught fire and it's still scaling. The biggest winners so far? Metaplanet and Smarter Web. The fund invested early in both putting 780,000 into Smarter Web's pre-IPO round and $1 million into Metaplanet warrants just as each company pivoted to accumulate Bitcoin. Today, those positions are worth about 110 million and $106 million, respectively. Metaplanet's stock has surged over 9,000% since April 2024. Bailey is now on Metaplanet's advisory board, and Trump's son Eric is part of its strategic team. The Trump-Bailey orbit is tight Trump even gave Bailey a public shout-out during a major Bitcoin event last year. Since then, crypto-friendly sentiment has grown louder, and Bailey has been among the most aggressive at monetizing it through public markets. Looking ahead, 210k Capital isn't slowing down. Managing Partner Tyler Evans says the firm is actively pursuing 30 more Bitcoin proxy deals not just in the U.S. and Europe, but also in markets like India, South Korea, and Southeast Asia, where Bitcoin ETFs haven't launched yet. The goal? Embed with management, engineer the treasury pivot, and ride the wave. It's risky these stocks can be volatile, as seen when Smarter Web dropped 55% from its June peak but if early returns are any sign, this playbook could be one of the most profitable (and unconventional) in crypto's next chapter. This article first appeared on GuruFocus.
Forbes
5 days ago
- Business
- Forbes
From Bitcoin To Ethereum: The Rise Of Crypto Treasury Strategies
A New Era for Crypto Treasury Strategies More and more companies are now raising cash specifically to implement crypto treasury strategies—allocating funds to buy bitcoin and other cryptocurrencies. MicroStrategy pioneered this approach at scale, and its success has inspired a wave of corporate imitators worldwide. MicroStrategy's Bold Bet on Bitcoin MicroStrategy began buying bitcoin in August 2020. As of July 18, 2025, it holds about 601,550 bitcoins, valued at over $70 billion at current prices. The company paid an average of $71,268 per coin, totaling $42.87 billion in investment. With bitcoin trading near $120,000, MicroStrategy's bitcoin position has gained approximately 68%. Its stock has done even better. Since January 2025, shares are up 46%, beating bitcoin's 26% gain over the same period. Since launching its bitcoin strategy in 2020, MicroStrategy stock has surged over 3,000%. The Copycat Effect in Crypto Treasury Strategies MicroStrategy's performance has turned heads. Japan's Metaplanet is one standout follower. The company says holding bitcoin through its stock offers tax advantages under Japanese law. Since April 2024, Metaplanet has accumulated over 16,000 bitcoin, and its stock price has jumped over 4,000%. 'One of the strategic advantages... is the more favorable tax treatment of shareholders who seek exposure to bitcoin through its stock versus the punitive tax treatment of those who own bitcoin directly.' – Benchmark Equity Research, 11 July 2025 Not all imitators have fared as well. GameStop entered the market in May 2025 following board approval in March. After raising $2.25 billion, likely for bitcoin purchases, its stock has remained volatile. So far, companies that moved early and stayed focused have delivered the strongest returns. Ethereum Enters the Crypto Treasury Spotlight While bitcoin led the way, Ethereum is now gaining ground in corporate treasuries. In June 2025, SharpLink Gaming (SBET) raised $425 million in a deal led by Consensys and named Ethereum co-founder Joseph Lubin as chairman. The company said it would use nearly all the cash to buy ether, Ethereum's native token. SBET shares jumped from $3 to nearly $79, and by July 18, traded at $29—still nearly 900% higher than before the announcement. Another example is BitMine Immersion Technologies. In May, crypto bull Tom Lee joined the board, and Peter Thiel acquired a 9.1% stake. BitMine revealed that about 40–50% of its treasury is now in ether. The stock soared from $3 to $135, and by July 18, closed at $42.35—a 1,300% gain from pre-announcement levels. A list of Ethereum treasury companies: A list of Ethereum treasury companies Beyond Bitcoin: Expanding Crypto Treasury Strategies The trend is expanding beyond BTC and ETH. SRM Entertainment, now Tron Inc., has gone all-in on TRX. Others have adopted BNB, Hyperliquid, and even Litecoin as reserve assets. In one dramatic case, YHC Corporation became a media sensation after Robert Leshner (founder of Compound) announced plans to acquire it and turn it into a crypto treasury company—then backed out due to lawsuits over the control issues. The stock whiplashed, highlighting how speculative this sector has become. With so many companies jumping into crypto, skepticism is growing. 'We're seeing companies with no real crypto ties suddenly pivot to these strategies just to pump their stock. It feels like a bubble.' – Anonymous fund manager, Bloomberg Markets, July 2025 Risks Facing Crypto Treasury Strategies Despite big returns, the risks are real. Critics argue that many crypto treasury strategies depend on a fragile loop: raise money, buy crypto, drive up share price, then raise more. Prominent short-seller Jim Chanos has been one of the harshest voices. He warns that MicroStrategy trades well above the value of its bitcoin holdings—and that its complex financing structure adds risk. 'MicroStrategy's model is simple: borrow cheap, buy bitcoin, watch it rise, sell more stock at a premium, and repeat,' he said. 'But if bitcoin falls or debt costs rise, the whole cycle could break.' He compares the current trend to the SPAC bubble of 2021—where hype fueled overvalued companies that eventually collapsed. Peter Schiff, Chief Economist & Global Strategist at Europac. Conclusion: The Future of Crypto Treasury Strategies Crypto treasury strategies are changing how companies manage their cash. Early adopters have seen massive gains, but risks around volatility, debt, and euphoria are growing. Whether this marks a true financial revolution or just another speculative bubble remains to be seen—but for now, crypto treasury strategies are clearly rewriting the corporate playbook.
Yahoo
15-07-2025
- Business
- Yahoo
Michael Saylor's Strategy Adds 4,225 Bitcoin, Bringing BTC Stack to 601,550
Strategy (MSTR), the largest publicly traded company holding bitcoin (BTC), increased its BTC reserves by acquiring 4,225 BTC for a total of $472.5 million last week. This latest addition brings Strategy's total bitcoin holdings to 601,550 BTC purchased for $42.87 billion, representing an average acquisition price of $71,268 per coin. At bitcoin's current market price of around $121,500, the company's BTC stack is valued at approximately $73 billion. Strategy financed the purchase through $330.9 million of net proceeds from common share sales under its at-the-market program, along with $71.1 million from STRK preferred shares, $55.3 million from STRF preferred shares, and $15.0 million from STRD preferred shares. Altogether, these transactions generated $472.3 million in net proceeds to fund the latest bitcoin acquisition. MSTR shares rose 2.50% percent to $445. Several other companies have also disclosed new bitcoin acquisitions on Monday. Sequans (SQNS) purchased 683 BTC, bringing its total holdings to 1,053 BTC. K33 (K33 AB) acquired 36 BTC and now holds 121 BTC, crossing the threshold of more than 100 bitcoin. Tao Alpha (SATS) bought its first 28.56 BTC. The Blockchain Group acquired 29 BTC, lifting its total reserves to 1,933 BTC. In addition, to Metaplanet's (3350) 797 BTC purchase. 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
