Japanese company Metaplanet reflects MicroStrategy by converting its balance sheet to Bitcoin. The Japanese government does not adopt Spot Crypto ETFs and its tax system places a heavy burden on crypto transactions, but stocks in companies like Metaplanet are considered regulatory proxy for Bitcoin exposure.
This edge is currently being tested as a change in the regulatory environment.
From Bitcoin Proxies to Volatile Equity
background
The company has pivoted from the hospitality business to a Bitcoin financial vehicle. Recent inclusion in the FTSE index attracted passive influx. With no local ETFs and heavy tax burdens, investors turned to Metaplanet as the “Pseudo-ETF.”
Policy Shift Loom: Japan's Tax Council is discussing the 20% taxation on cryptocurrency profits, as well as stocks, which are much lower than the largest, the current 55%. This could potentially increase your direct holdings. At the same time, JPYC, a yenstable coin supported by Japanese government bonds, has gained traction as a regulated liquidity tool.
nothing is impossible
Metaplanet shares stocks trading at a premium of 400% or more against Bitcoin Holdings' net value. According to the Financial Times, 30% to 50% BTC drawdowns can lead to sharper equity sales. The repeated growth of capital in stock and warrant issuance raises dilution concerns.
Beincrypto reported that Metaplanet's premium relies on a self-enhancing loop. Higher premiums allow you to buy more BTC and raise funds to maintain the premium. If BTC drops, the cycle can break.
Meanwhile, some analysts point out that Metaplanet's consistent BTC yield records and low debt suggest that dilution is less severe than feared.
Latest updates
Metaplanet has applied for the provision of up to 555 million overseas shares. The company has revealed that Bitcoin Holding has reached 18,991 BTC. It's worth about $2.1 billion. Stock prices have skyrocketed 480% since the start of the year. A benchmark study analyzed the achieved volatility at 133.9%.
Micro Strategy also suffered
Historical perspective
MicroStrategy showed how NAV Premium can fund BTC through stock sales in bull markets. Cheaper and simpler channels will emerge, premiums will be compressed, windows will be narrower, and metaplanets will need to be managed. Vanek is focusing on similar dynamics in the US market.
- Repeated dilution from products
- Premium Compression and Bitcoin Navigation
- Higher volatility than Bitcoin itself
- Alternative risks as tax reform reduce friction
- If the passive fund adjusts its exposure, the flow inversion
- If the MNAV loop breaks, the “death spiral” for the entire sector
I'm looking forward to it
Metaplanet aims to build a large-scale Bitcoin Treasury Ministry by 2027. The challenge is to prove that the stock route continues to be relevant as ETFs and direct holdings grow. When premiums are compressed, capital discipline and cash buffers are important.
Expert opinion
Bitwise's European Research Director André Dragosch commented on these issues to Beincrypto.
- About taxes and ETFs: “Currently, stocks enjoy far better tax treatment in Japan, but with the approval of the Bitcoin ETF in 2026 and crypto tax reforms progress, the role of MPs as a Bitcoin proxy will most certainly be lost.
- About dilution: “MP has a strong track record of positive yields of BTC, meaning it has less dilution than feared. Its low debt and high MNAV allows for capital gains with minimal dilution, and past runs suggest that this is likely to continue.”
“The purchase of Metaplanet stocks is the effective purchase of Bitcoin exposure with a regulated rapper.” – Vincent Liu, Chronos Research
“Many second and third generation individuals in the family office are beginning to learn about and participate in cryptocurrencies.” – UBS China Assets Executive via Reuters
