Transcription
Good day everyone. My name is Adam Livingston and I am the Bitcoin wizard. Metaplanet has officially gone from "we buy Bitcoin and ignore traditional finance" to "we are building the actual machine that eats the old monetary order alive." We have a lot of exciting updates today.
It's almost like running a Bitcoin treasury strategy in the country with such a weak currency is a great idea, and they are expanding their horizons quite a bit. It's almost as if this Japanese hotel company is seeing this government's just drowning in debt. Seriously, look at Japan's debt to GDP ratio and then Metaplan's just saying, "Hey, we're going to look at this. You know what this needs? We need more Bitcoin."
And also, apparently a venture arm, also asset management, also stable coin rails, also Miami, because apparently if you're going to participate in the demolition of fiat, you might as well do it somewhere humid. So that's what this is. I don't think that this is a sleepy little treasury company anymore, folks. They are being quite ambitious here. Apparently, they have woken up and said, "You know, hoarding Bitcoin was only step one. Now they want the entire ecosystem. They want the picks. They want the shovels. They want the rails, the wrappers, the yield products, the financial plumbing, the shareholder loyalty, the entire beautiful orange circus."
So, they're becoming a Bitcoin financial platform, a capital markets weapon, and a public company expression of the fact that the old world is running on fumes. And ultimately, this is how the transition was always going to happen. First, you buy the assets, then you build the rails, then you package the products, then you absorb the flows, and then one day, the dinosaurs on TV are going to wake up and realize that the orange thing that they laughed at for years now owns the future. It's just absolutely beautiful. It was always meant to be this way.
Now, speaking candidly, MetaPlanet remains my largest Bitcoin treasury position by far. I'm super bullish on this company more than any other company because of the unique advantages that they have in Japan, as well as being still small enough for some incredible growth ahead. Things have been quiet from them recently, but it is cool to see what they've been building on in the shadows. Obviously, Sailor and Strategy are taking all of the thunder, not only in the Bitcoin treasury space, but what's happening with Strategy right now is the most exciting thing happening in the Bitcoin space, period.
I'm not going to lie, my initial reaction to all of this news immediately was, "Whoa, this is a lot to wrap my head around. Is this too complicated?" But then I really dug into it and I don't think it is too complicated. I am still bullish on this. Obviously, the question at the top of everybody's mind is when are we going to get the preps publicly listed? Mercury and Mars, are they coming out soon publicly for the Japanese investor base? I do think that some aspects of the news here that we'll be getting into today are laying the foundation for the public issuances of these preferred equities. But we're going to get into all of it. It's going to be a very fun video today.
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So, this is the way that I am conceptualizing MetaPlanet as it stands with these new integrations here because anybody can wake up, they can buy Bitcoin, they can post a laser eye selfie and pretend that they're Michael Sailor's second cousin. That's very cute. That is cosplay. But Metaplanet looked at Japan and they said, "Wonderful. We have the Apex asset. Now, where is the actual infrastructure for the financial civilization that's supposed to sit on top of it?" And the answer was, in corporate terms, apparently not enough. So they created MetaPlanet Ventures KK, which is a wholly owned subsidiary whose explicit job is to fund, incubate, and scale regulated Bitcoin financial infrastructure primarily in Japan. Now, that is a very elegant way of saying that they are no longer content to simply sit on the orange throne. They want to own the plumbing under the castle as well.
So if we look at the list of target areas here, there's custody, there's compliance technology, there are lending platforms, payment rails, stable coin settlement systems, investment product architecture. In other words, all of the very ugly, glorious machinery that is required to turn Bitcoin from that volatile thing that your uncle knows about to an actual sovereign-grade financial layer. We know that the United States is ahead of Japan in the financial infrastructure that is kind of backing Bitcoin adoption. Japan still has to get there. Japan still has a couple years to get to where the United States is, and MetaPlanet wants to spearhead that advancement.
Now, this is the part that nobody's really understanding because they hear the word adoption and then they think of another BlackRock ETF commercial with some guy in loafers standing in a vineyard. No, adoption means rails, pipes, the collateral pathways, settlement logic, the ugly backend that quietly eats the old world while everybody else is debating about if Bitcoin has intrinsic value. And the really smart part is that MetaPlanet said it expects to invest about 4 billion JPY over the next 2 to 3 years, that is funded by their Bitcoin income business cash flows, which is really cool. They have a put underwriting business. They make a bunch of yen. They get to invest that yen into something that will drive Bitcoin adoption forward. Remember, MetaPlanet is a cash flow positive business, which is awesome. So, the cash flow can fund the ecosystem infrastructure. Absolutely. Which just strengthens the Bitcoin financial stack. And then the stronger that stack gets, the more legitimate and scalable their treasury model ultimately becomes.
There are some Bitcoin treasury companies, the really lesser-known ones, that are diversifying into gold. We're not even going to talk about that nonsense. I really love how MetaPlanet has cash flow. So, just invest in the Bitcoin ecosystem. It can only help you over the long run. To me, the investment amount that they're actually willing to put into this type of thing is so small that it seems like the payoff is going to be definitely worth it. It's not like they're selling half of their Bitcoin stack to get fiat liquidity to make some other business investments. Honestly, this is a very small amount to be investing when you compare it to the entirety of their Bitcoin stack. So, I say go ahead and do it. If you think that you can build the Bitcoin financial ecosystem with this capital, go ahead, knock yourself out.
You have to remember that the management team here, Dylan, Simon, they are the actual ones in the conversations with regulators, with other Bitcoin companies. They are the ones that are feeling exactly where Bitcoin is at in terms of institutional regulatory adoption. I trust that they understand the next phase of the game if they need to feel that they need ecosystem capture. Uh, yeah, that sounds like the smart move.
Now we get to the part that separates the tourists from the people who actually understand how money moves. MetaPlanet signed a letter of intent to invest up to 400 million JPY into JPYC, and they are doing this through MetaPlanet Ventures, and this would be MetaPlanet Ventures' first ever investment. And that detail matters because first investments are like first tattoos. You learn a lot about a person from what they choose to carve into themselves permanently. And MetaPlanet is looking at the battlefield of digital finance right now and they are saying, "Yes, the opening move is Yen Stablecoin Rails." That is a company run by people whose brains are fully plugged into what's going on because everybody always continues to get hypnotized by the shiny asset.
Now, that only makes sense. We know that Bitcoin gets the headlines. Bitcoin gets the price chart. Bitcoin gets the religious warfare on your Twitter timeline. We're all aware of that, obviously. But the settlement layer in terms of Bitcoin and the fiat ecosystem, it's sitting in the corner like a psychopath in a crime movie. Because that settlement layer is actually controlling the movement of value, isn't it? I think MetaPlanet really understands that if Bitcoin becomes deeper, broader, and more institutional, then the fiat leg of those transactions also needs to evolve, especially in Japan. Whether it's the spot markets, lending, collateral, options, tokenized securities, the world is moving in that direction, and all of it still needs a currency side. And I think that the management team is just acknowledging that. They are seeing the writing on the wall.
And JPYC isn't some random cartoon coin that's cooked up in a Discord server by a guy named Neon Shotgun420. So according to MetaPlanet's disclosure, this is actually the first entity in Japan to obtain registration as a fund transfer service provider from the Financial Services Agency for issuing a fully reserved Japanese yen stable coin. The filing also says that these reserves for the stable coin are backed by Japanese government bonds. Surprise, surprise, just like how USDT from Tether is backed by US government treasuries. So, MetaPlanet is aiming at a regulated, compliant, already positioned piece of infrastructure in a market that it believes is largely untapped. So, that is some strategic appetite here. I personally love it.
If they are trying to own part of the settlement substrate for Japan's digital asset economy, you think of what that can look like in 5 to 10 years. That is the direction that our monetary system is going. Whether people like to admit it or not, the banks can go kicking and screaming gently into the good night, but MetaPlanet just wants to own part of the future. So, if you actually look at the disclosure, it really lays out all of the possible applications. We're talking tokenization of corporate securities. So, tokenized stocks, essentially stable coin native distributions on digital asset instruments, Bitcoin lending, collateral infrastructure using digital yen settlements. So really an entire architecture diagram is just hiding inside of this one filing here. That is a company that is quietly sketching the blueprint for a parallel financial stack while a lot of the business executives in Japan are still learning how to pronounce blockchain without sounding like they're concussed. I'm not going to lie, I dig the investment. It's not too much money. And you think what would have happened if Strategy invested in Tether in the year 2020? Uh, that probably would have been a good idea.
Now this is a fun one. The board also approved the creation of MetaPlanet Asset Management Inc. in Miami, Florida, which is a wholly owned US subsidiary that is going to focus on Bitcoin related investment products as well as Capital Markets Advisory and Regulatory Infrastructure. The company's exact words, they said the goal is to build a platform that bridges Asian and Western capital markets as the ecosystem around Bitcoin's based financial products continues to expand. Now, is that a long run-on sentence? Maybe. I view it as, "We would like to stand in the middle of global Bitcoin capital flows wearing a suit and collecting influence." And of course, it's Miami. Absolutely perfect. The city built by sunlight, performance art, suspiciously confident real estate people, and a spiritual commitment to financial excess. Naturalist is, of course, the place that you want to plant the flag if you're going to channel global capital into Bitcoin products. You don't launch the beachhead for a new monetary order in a sad little office next to a Panera Bread. You do it in Miami where every single third person on the street looks like they either manage a fund, sell ketamine startups, or they own a yacht named Yield.
Now, this is the most genuinely juicy part here. If you're looking through the disclosures, folks, you know that you want digital credit. MetaPlanet explicitly says that it sees opportunities across perpetual preferred securities and related fixed income instruments in a category it says is increasingly called digital credit. It also points to actively managed strategies using derivatives and structured positions plus equity and credit strategies focused on Bitcoin treasury companies along with index products and benchmarks to track this emerging asset class. Now, that is serious ambition.
If you break down what I just said, yeah, they're kind of telling you in plain regulatory English that they want exposure to the entire spectrum of digital credit, yield, volatility, equity, structured products, benchmarks, the entire delicious buffet of financial engineering that is being built around Bitcoin with digital credit right now. We look at all the independent, more third-party companies that are building digital money on top of digital credit. I think MetaPlanet, they live in this space. They probably see a lot of opportunity and they are trying to go after it with MetaPlanet asset management and the capital commitment to this entity. It's really modest enough to be disciplined but meaningful enough to signal some intent here. The new subsidiary is being launched with capital up to $1 million only. Now, this tells you this is phase one. This is the beachhead, the legal and the operational wedge that gets them physically and institutionally planted in the United States before they scale any further, which is a smart move. It's a very smart move in my opinion. You don't need to deploy a trillion dollars on day one when the real prize is going to be access, positioning, and the right to build the machine in this emerging new market.
This is really bullish in my opinion, not only for MetaPlanet, but for the entire asset of Bitcoin itself. You're still seeing these people on Bitcoin Twitter trying to process Bitcoin with their 2021 store of value vocabulary while these people, they are literally building cross-border capital markets products and then you're seeing building a new digital credit infrastructure. For those of you that have been watching the channel for a while, you do understand that I see where the puck is going. It seems like MetaPlanet is too, and they want to build on top of it. Let's go.
Now about 10 days ago on March 3rd, the board actually approved a transition to a company with three committees, specifically nomination, audit, and compensation. Now, all of these are subject to shareholder approval at the March 25th annual general meeting. So, you might be asking, "Okay, Adam, what does this mean?" This is my read on it personally. The filing said, "The point is to clarify supervision versus execution, strengthen both, and then build a more systematic audit framework." Now, in my opinion, the translation here is that MetaPlanet is putting on some institutional armor here. The company wants to be taken seriously by bigger pools of capital and serious capital. What do they like? They like structure. They like discipline. They like a boardroom that looks like it can survive contact with reality. And then you pair that with the governance upgrade with the financing move from January 29th, and the whole thing starts to look like a beautifully organized raid on Fiat's graveyard. There's also a shareholder benefits program, even. How exciting.
So, what is the deeper takeaway from all of this? To me, it seems like MetaPlanet is really engineering a brand new organism entirely. They're going to upgrade their governance so the institutions feel safer dealing with them. Capital's going to get raised so their treasury can continue to grow, and then the proceeds get directed at Bitcoin. Their core strategy isn't changing here. The shareholders are going to get woven into a stronger community so the investor base can hopefully become a bit more stickier. And this really is how a company stops being a stock and becomes a Bitcoin movement with a balance sheet. And for the people still staring at this through the old framework, still clutching their little discounted cash flow model like a rosary in house fire, good luck because MetaPlanet is very clearly building a company designed for the Bitcoin age, and the Bitcoin age has very little patience for financial mediocrity. Giga bullish on MetaPlanet, very bullish developments. I really hope that they can get Mars and Mercury hopefully issued by the end of Q2 of this year. That would be awesome. We look at the success of Stretch right now in the United States. I cannot wait to see what MetaPlanet can do with these preps in Japan. I think it's going to blow everybody's minds.
Anyway, that's it for me today. My name is Adam Livingston. I am the Bitcoin Wizard. If you enjoyed this presentation, please like this video and subscribe to the channel to continue to support my mission of spreading the orange gospel of Bitcoin to the masses. Have a terrific day, everybody. Do not party too hard. Class dismissed.
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