Corporate BTC leverage for Strategy and Metaplanet is paying off — for now

Just as Bitcoin has climbed to new all-time highs over the past two months, Bitcoin-adjacent stocks have also seen notable gains following the announcement of a 90-day pause on tariffs.

The clearest bellwether is Strategy (ticker: MSTR), which has repositioned itself as a leveraged Bitcoin operating company. Since 2020, the firm has issued convertible notes, senior secured bonds, and more recently, launched an “at-the-market” equity program to raise capital, nearly all of which has been used to acquire more BTC. Shareholders effectively gain exposure to a publicly traded Bitcoin tracker with embedded software cash flow and modest tax benefits.

Strategy’s market capitalization has surged more than 80% over the past seven weeks, rising from $63.3 billion to $115 billion. The company also recently announced a $2.1 billion Series A Preferred Stock offering — its most aggressive capital raise to date in its ongoing Bitcoin accumulation strategy.

Meanwhile, in Japan, Metaplanet (TSE: 3350) has adopted a similar model, albeit at a smaller scale. The company has raised yen-denominated debt and equity to buy Bitcoin, and its stock has soared more than 220% in the same period. Investors are betting it could become “Japan’s MicroStrategy.”

By tapping capital markets and pledging to accumulate BTC irrespective of short-term volatility, both firms amplify Bitcoin beta through corporate leverage. This model performs exceptionally well when BTC is trending higher (equity investors capture spot appreciation plus balance-sheet optionality), but it also introduces refinancing and mark-to-market risk if crypto prices retreat or if credit markets tighten.

For now, the market is rewarding this strategy; however, the durability of these premiums will hinge on BTC’s trajectory, funding costs, and each company’s ability to navigate cyclical drawdowns without diluting shareholders. If Bitcoin continues to make new highs and the equity market continues to reward "embedded-BTC" treasuries with valuation premiums, it is reasonable to expect additional small- and mid-cap firms, particularly those with thin core revenue lines or cyclical cash flows, to emulate the Strategy/Metaplanet template.

While widespread corporate adoption would likely be a powerful incremental tailwind for Bitcoin’s price, it would also weave new strands of traditional-market leverage into the asset, creating a feedback loop that could not only magnify bull-market euphoria but also amplify bear-market stress.

This is an excerpt from The Block's Data & Insights newsletter. Dig into the numbers making up the industry's most thought-provoking trends.