Can Metaplanet’s Bitcoin Reserve become the new financial frontier?

Just as Amazon has built the rails for the digital economy, Metaplanet President Simon Gerovich says his company is building a new financial infrastructure. And he argues that markets often mistakenly mistake companies during periods of structural change, obsessing with prices, missing the power under the hood.

As Jeff Bezos’ famous statement in Amazon’s Dot-Com Crash, “Inventory is not a company, a company is not a stock,” Gerovich frames Metaplanet with a historical perspective to bolster his lawsuit as a case study of misunderstood values.

Metaplanet’s fundamentals are stronger than ever

To say Metaplanet’s performance this year is impressive is an understatement of grand proportions. Bitcoin revenues surged to 2.44 billion yen in the third quarter, up 115.7% per quarter. Operating profit cuts forecasts by 88%, and of all public companies around the world, only three have more Bitcoin.

Metaplanet currently owns over 30,000 BTC, currently valued at around $3.7 billion. The balance sheet is untouched, with leverage of less than 1%, which is rare among companies with high cryptocurrency.

The pain of short-term prices cannot be denied. Metaplanet stocks slip away, and it hits the team’s morale and investors. However, similar to Amazon in the early 2000s, stock prices and company values ​​can remain out of sync for a long period of time.

Is the Amazon parable plausible?

Critics called Jerrovich’s comparison to Amazon “silly”, but he wasn’t dazzling. Early Amazon skeptics saw glorious online bookstores and missed the billion-dollar rails laid for the entire digital economy.

Today, he argues that Metaplanet is not just a “bitcoin holding company.” It is building a new currency age financial infrastructure, measuring total addressable markets (TAMs) measured in hundreds of trillions (current valuation of current Fiat currency assets).

A model as old as a lean banking business like a startup

Metaplanet’s business is nothing new. This is the net interest margin. Banks borrow at one rate, lend at a higher price, and pocket the differences. An important twist is that Metaplanet spread is generated by holding Bitcoin as a reserve asset.

Currently, Japanese households and businesses have more than $10 trillion in idle yen as they have gained close to zero, the raw material for Metaplanet’s high yield model.

Metaplanet does not have the major overhead and bureaucracy of traditional banking. Investors who buy stocks are already benefiting from a Bitcoin-centric strategy. The company is also looking at ways to provide Japanese people with reliable, higher revenue options. Ideas that can be expanded worldwide.

Overall: Bitcoin as a pristine collateral

Metaplanet’s bets are simple yet ambitious. Bitcoin is becoming the world’s most difficult collateral. The migration of investors from JPY’s earners to the global USD pool is seeking yields, safety and returns, and Metaplanet is building bridges to facilitate that shift.

Over $100 trillion in global savings and bank accounts, earning less than inflation. As Metaplanet believes, if Bitcoin becomes more widely accepted, even a small portion of that money travelling to Bitcoin can dramatically change the growth and value of the company.

Great companies are often the most undervalued, as moats become deeper and markets are not seen on the short-term horizon. In Metaplanet’s paper, Bitcoin’s balance sheet is not a gimmick, but a link pin for the opportunity to earn more than $100 trillion in return. As Gerovich states:

“This is not a small vision. It’s one of the biggest opportunities in the global market. If you haven’t seen it yet, you can understand it. Most of it didn’t even look at it on Amazon.”

The market may not have “get it” yet, but history shows that fundamentals should ultimately force re-regulation. And, like Amazon, building something new often means waiting for the market to catch up.

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