G’day Bitcoiner,

Here’s the week in Bitcoin treasuries.

🇯🇵 🥷 Metaplanet’s Record Q2 Fuels Bold Bitcoin Fixed Income Push

🇺🇸 US Treasury Walks Back “No Bitcoin” Comment, Eyes Strategic Reserve Expansion

🇳🇴 Norway’s Wealth Fund Boosts Bitcoin Exposure to $863M

🚀 KindlyMD & Nakamoto Complete Merger, Target 1M BTC

Metaplanet’s Record Q2 Fuels Bold Bitcoin Fixed Income Push

Triple-digit asset growth, a ¥17.4B profit swing, and a plan to rewrite Japan’s yield curve.

Metaplanet didn’t just post a strong quarter - it delivered a blowout Q2 that tripled assets, swung from billion-yen losses to double-digit profits, and set the stage for one of the most ambitious corporate Bitcoin plays yet.

While most of Japan’s $8–10 trillion fixed-income market grinds along at 1–2% yields, Metaplanet’s latest earnings call revealed a strategy to inject Bitcoin-backed income products into the system - potentially at 7–12% yields - via a new perpetual preferred equity program.

Q2 by the Numbers: From Losses to Leverage

• Revenue: ¥1.239B ($8.4M) +41% QoQ

• Gross Profit: ¥816M ($5.5M) +38% QoQ

• Ordinary Profit: ¥17.4B ($117.8M) vs. -¥6.9B last year

• Net Income: ¥11.1B ($75.1M) vs. -¥5.0B last year

• Assets: ¥238.2B ($1.61B) +333% QoQ

• Net Assets: ¥201.0B ($1.36B) +299% QoQ

While core operations delivered ¥816M in gross profit, the real rocket fuel came from Metaplanet’s Bitcoin treasury. Mark-to-market gains on its 18,000+ BTC holdings turned an operating profit into a ¥17.4B ordinary profit and ¥11.1B net income - a swing of more than ¥22B from last year’s loss. Q2 didn’t just show operational growth; it proved the leverage of a Bitcoin-heavy balance sheet when the market moves in your favour.

“Metaplanet Prefs”: Bitcoin Meets Yield-Hungry Japan

The program will issue perpetual preferred equity backed by Bitcoin, designed to:

• Deliver materially higher yields than JGBs

• Avoid debt refinancing risk

• Provide permanent capital for BTC accumulation

In a market where even “high yield” corporate bonds can’t clear 3%, this could be a watershed moment. The goal? Build a Bitcoin-backed yield curve for Japan—pricing BTC-collateralized credit instruments across short, medium, and long durations, tailored to institutional and retail appetite.

Adam Livingston’s Take: Why This Could Be “Incredibly Bullish” Over the Next Decade

Prominent Bitcoin-equities analyst Adam Livingston calls Metaplanet “The Greatest Investment he’s ever come across” breaking it down into six key drivers:

1. Premium-Agnostic Compounding – Preferreds create repeatable torque for the treasury without relying on high equity premiums, enabling growth in bullish, neutral, or even corrective markets.

2. Japan’s Cost of Capital Advantage – With the lowest long-bond yields in the G7, Metaplanet can set attractive coupons for investors while keeping them well below expected multi-year BTC returns, widening the spread that fuels compounding.

3. Risk Discipline Baked In – Preferred issuance capped at ≤25% of BTC NAV, with stress tests showing coverage even under severe BTC drawdowns, reducing financing risk.

4. Defending the mNAV – Preferreds are accretive regardless of market premium, giving Metaplanet a second funding engine alongside common equity issuance.

5. BTC Flywheel – Preferred proceeds fund both BTC purchases and an options premium business, creating cash flows that sustain dividends, which in turn finance more BTC, expanding NAV in a self-reinforcing loop.

6. The Giga-Bullish Math – Even at a 10% BTC ARR, preferred-funded torque delivers ~2.1× returns; at 20–40% ARR, torque ranges from 5.7× to 28.4× over a decade.

Livingston’s bottom line: Preferreds reframe capital raising as a compounding engine, shifting success dependence away from fleeting equity premiums and toward multi-year Bitcoin appreciation and time in the market.

A Market Ripe for Disruption

Japan’s household financial assets:

• $9.5T in fixed income

• $6.8T in equities

• $7.6T in cash/deposits

The listed preferred share market? Just $2.7B—less than 0.02% of the total. Into that vacuum, Metaplanet plans to issue classes ranging from conservative variable-dividend perpetuals pegged to JGB spreads to high-yield fixed perpetuals for risk-tolerant buyers.

The Takeaway

Q2 proved Metaplanet can grow assets and profitability at warp speed. Now, with “Metaplanet Prefs” and a Bitcoin-backed yield curve, it’s aiming to do the same for Japan’s yield-starved bond market - backed by a preferred share strategy that could drive multi-decade compounding.

📈 When you triple assets in a single quarter and engineer a yield curve around Bitcoin, you’re not just playing in the market - you’re trying to redefine it.

Short ₿its 🌟

🇺🇸 US Treasury Walks Back “No Bitcoin” Comment, Eyes Strategic Reserve Expansion

Treasury Secretary Scott Bessent initially rattled the Bitcoin community by saying the U.S. would not be buying BTC, but later clarified that forfeited Bitcoin will form the foundation of President Trump’s Strategic Bitcoin Reserve. Bessent stated Treasury is exploring budget-neutral ways to expand holdings, a move backed by Senator Cynthia Lummis, who said revaluing gold reserves and transferring the gains could help fund the SBR without adding to the $37T debt. The goal: cement America’s status as the “Bitcoin superpower of the world” under the proposed BITCOIN Act.

🇫🇷 Sequans Adds to Bitcoin Stack with $1.5M Purchase

Sequans Communications has boosted its Bitcoin treasury with another 13 BTC, spending $1.5M at an average of $117,012 each. The Paris-based IoT chipmaker now holds 3,171 BTC worth roughly $370M, acquired at an average of $116,709 per coin. This latest buy cements Sequans’ position as one of the few publicly traded tech firms running a Bitcoin-first treasury strategy.

🚀 KindlyMD & Nakamoto Complete Merger, Target 1M BTC

KindlyMD and Nakamoto Holdings have completed their merger to form a Nasdaq-listed Bitcoin treasury vehicle aiming to acquire one million BTC. Led by CEO David Bailey, the company raised $540M via PIPE financing and plans a $200M convertible note to fund purchases. The mission: drive corporate and government adoption of Bitcoin as the foundation of global capital markets.

🇦🇺 🦘 DigitalX Targets 2,100 BTC by 2027

ASX-listed DigitalX has launched its “21 Hundred” strategy to grow its Bitcoin holdings from ~500 BTC to 2,100 BTC within two years, aiming for over 300% growth. Funding options include asset conversions, preferred equity, debt instruments, and strategic raises. The move cements Bitcoin as its primary treasury asset, aligning DigitalX with global corporate BTC leaders.

🇫🇷 Capital B Acquires 126 BTC, Holdings Pass 2,200

French-listed Capital B has added 126 BTC for €12.4M (~$14.4M), bringing its total stash to 2,201 BTC at an average of $106,770 per coin. The company is on track to hit 3,000 BTC by fiscal year-end in September, aiming for 1% of all Bitcoin by 2033. With a 1,519% YTD Bitcoin yield, Capital B now ranks 24th on Bitcoin Treasuries, tied with HIVE Digital Technologies.

🇳🇴 Norway’s Wealth Fund Boosts Bitcoin Exposure to $863M

Norway’s $1.5T sovereign wealth fund now indirectly holds 7,161 BTC (~$862.8M), up 88% in six months and 193% year-on-year. The exposure comes via stakes in BTC-heavy firms like Strategy, Coinbase, Block, Marathon Digital, and Metaplanet. Analysts say it’s a byproduct of global equity holdings, but it underscores Bitcoin’s quiet march into mainstream portfolios.

🇬🇧🚀 Smarter Web Adds $35M in Bitcoin, Holdings Near $285M

London-listed Smarter Web Company has bought 295 BTC for $35.2M, lifting its stash to 2,395 BTC worth about $284.8M. The purchase, funded partly by a recent £7.6M share placement, keeps it in the global top 25 public bitcoin treasuries and the UK’s #1 corporate holder. With $942K in cash still on hand for BTC buys, the firm is already up $20M on paper.

🍜 DDC Adds 120 BTC, Targets 10,000 by 2025

DDC Enterprise has boosted its Bitcoin holdings to 488 BTC after a month-long acquisition pause to build partnerships with Galaxy Digital, QCP Capital, and Matrixport. With an average cost of $98,737 per BTC, the global Asian food platform plans to scale to 10,000 BTC by end 2025 and rank among the top three public Bitcoin treasuries within three years. Strong cash reserves back the push, though analysts flag a rapid burn rate.

Tweet of The Week

Podcast of The Week

📈⚡ How Strategy Could Leapfrog Apple to $5T+

Adam Livingston argues Apple is stuck polishing iPhones and hoarding depreciating cash, while Strategy (MSTR) is relentlessly converting fiat into Bitcoin’s terminal scarcity. By “raising and deploying” into the hardest money on Earth, Strategy turns capital into a compounding engine that could eclipse Apple’s $3T market cap. His breakdown mixes hard math, capital markets wizardry, and unapologetic bullishness on Bitcoin’s asymmetric power.

If you have questions about how Bitcoin could help you or your business, please don’t hesitate to reach out for a free 30-minute consultation 🕒. We're here to help you navigate the future of Bitcoin 💡

Thanks for reading! We hope you’ve enjoyed this week’s edition and look forward to seeing you next week! 👋

Daniel 

for Bitcoin on Balance

32 York Street, Sydney NSW 2000, Australia

https://www.bitcoinonbalance.com/