Metaplanet Backs SGA Takeover for Bitcoin Reserve Strategy
Metaplanet CEO Simon Gerovich and a Hong Kong-led consortium, including Top Win International, KCGI and UTXO Management, will acquire KOSDAQ-listed software firm SGA for about $25 million. The deal, approved by SGA’s board and Korea’s Financial Services Commission, issues 58.86 million new shares and adds a Bitcoin reserve strategy alongside SGA’s existing operations. This Bitcoin reserve strategy follows the MicroStrategy model, raising capital via zero-coupon convertible bonds or equity to fund large BTC purchases. Since April 2024, Metaplanet bought 797 BTC at an average price of $117,451, boosting its holdings to 16,352 BTC. It aims to hold about 1% of the global Bitcoin supply (≈210,000 BTC) by 2027. Pending final regulatory approvals, this corporate Bitcoin reserve strategy could drive long-term BTC demand and market confidence, though debt-servicing and dilution risks may increase if BTC prices fall.
Bullish
The consortium’s plan to integrate a Bitcoin reserve strategy into a public company and its disciplined BTC accumulation support long-term demand and market confidence in Bitcoin. The MicroStrategy-style approach signals institutional adoption, which historically drives price appreciation. While debt-servicing and share dilution risks pose short-term selling pressure, the overall trend points to increased corporate demand and price support for BTC.