SB Coin Stock: Innovative Narrative or Ethereum Leverage?

Introduction

The trend of publicly listed companies shifting to cryptocurrency reserve strategies is still ongoing. Some companies see this as a last-ditch effort to save their business, while others simply follow in the footsteps of MicroStrategy. However, there are a few truly innovative projects that stand out.

This article will explore the leaders in the strategic reserves field of Bitcoin and Ethereum, analyzing how they provide alternatives to spot ETFs, deploy complex financing structures, achieve tax optimization, create staking yields, integrate the DeFi ecosystem, and leverage unique competitive advantages.

Bitcoin

Overview

According to data from BitcoinTreasuries.net, MicroStrategy has quickly risen to become the largest corporate holder among publicly disclosed entities, second only to iShares Bitcoin Trust, controlling nearly 2.865% of the total supply of 21 million.

Nevertheless, ETFs and trusts still dominate, led by iShares, Fidelity, and Grayscale. At the sovereign level, the United States and China hold the most Bitcoin, with Ukraine also maintaining a substantial reserve. Among private companies, Block.one and Tether Holdings are at the forefront.

Among all entities holding Bitcoin, the United States and Canada rank first, followed by the United Kingdom. However, it is worth noting that Japan's Metaplanet( ranks 5) and China's Next Technology Holding( ranks 12).

The following list shows the Bitcoin holdings of the top 30 publicly traded companies, with MicroStrategy leading by a significant margin.

Even excluding MicroStrategy, MARA and Twenty One Capital still rank at the top, but the distribution of holdings remains highly concentrated, with the amount of Bitcoin held by most companies outside the top ten being only moderate compared to the leaders.

When evaluating the Bitcoin reserves of publicly traded companies, two indicators are particularly worthy of attention:

• Current Value to Cost Ratio: Compares the current USD value of Bitcoin holdings with the initial payment cost. A higher ratio indicates substantial unrealized gains, which can enhance returns and provide a buffer against market volatility.

• Bitcoin NAV Multiple ( BTC NAV Multiple ): The calculation method for mNAV is to divide the company's market capitalization by the dollar value of its Bitcoin reserves; some companies use enterprise value ( EV ) instead of market capitalization when reporting mNAV.

This multiple reflects investors' premium assessment of the company's core business beyond its crypto assets.

• When mNAV > 1, the market values the company higher than its Bitcoin holdings, indicating that investors are willing to pay a premium for each unit of "Bitcoin holdings."
• The key is that when mNAV > 1, anti-dilution financing can be achieved: when mNAV > 1, the company can issue new shares → buy Bitcoin → increase the net asset value of Bitcoin → drive the growth of enterprise value (EV), while the Bitcoin holding per share increases.

The analysis of the NAV multiples of the top 30 companies shows significant differences among groups, such as Tesla and Coinbase. Since these companies do not primarily focus on Bitcoin reserves and have other core businesses, their NAV multiples are correspondingly higher.

After excluding non-Bitcoin reserve companies, it can be seen that most companies are actually trading at a high NAV multiple, many exceeding 2. Only four are below NAV = 1, while large holders like MSTR and MARA do not exhibit the extreme multiples seen among smaller companies.

According to data from BitcoinTreasuries.net, companies that provide comprehensive public disclosures do indeed show a high cost basis ratio, reflecting considerable unrealized gains, likely because more profitable companies are more inclined to disclose relevant information.

Metaplanet Inc. (MPLAN)

Among the many listed companies mimicking MicroStrategy's strategy, a Japanese company stands out: Metaplanet. So far, it has accumulated 16,352 bitcoins, ranking among the top five publicly traded companies holding bitcoin, and has significantly accelerated its acquisition pace in the past few months.

As it self-describes: "Raised $500 million in equity capital", "Japan's largest equity issuer in 2025", "The largest zero-cost financing in history".

Japan's interest rates have remained low for a long time, only rising to 0.25% in July 2024, and again to 0.5% in January 2025, where they currently remain. This interest rate differential is also evident in the convertible bond market: as shown in Metaplanet's chart, U.S. issued convertible bonds typically come with higher coupon rates, while those issued in Japan have very low interest rates and less volatility.

Although the market interest rates in Japan are generally low, Metaplanet's "zero-interest financing" is not cost-free; the company balances the cost by granting stock options ( SARs ) as compensation.

Metaplanet first raised cash by issuing zero-coupon bonds with a maturity of six months at par. To ensure solvency, the company granted the EVO fund the corresponding number of stock appreciation rights (SARs) based on the same board resolution.

The bond covenant stipulates: upon maturity, Metaplanet must use the EVO fund to exercise the aforementioned SARs at a floating exercise price, as the sole source of funds for redeeming the bonds.

Through this arrangement, Metaplanet avoids any regular interest expenses.

The revenue sources of the EVO Fund include dual protection:

1. Principal Protection: The principal is fully repaid in cash at the bond's maturity, avoiding the risk of decline in the underlying stock.
2. Upward revenue: When the Metaplanet stock price exceeds the floating exercise price, the EVO fund obtains the difference between the market price and the exercise price by exercising SARs.

The "5.55 Billion Plan" launched on June 6, 2025, with stock appreciation right number (, is the largest single financing scheme to date for Metaplanet. A total of 5.55 billion stock appreciation rights #20-# SARs ) have been issued, equivalent to 92.4% of the circulating shares of 600.7 million shares, with a maximum financing potential of 770 billion yen after exercise. The initial floating exercise price of this right is 1,388 yen per share, reset every three trading days based on the average closing price of the previous three days at 100%/101%/102%, but not lower than the minimum guaranteed price of 777 yen.

The EVO Fund can be exercised at any time between June 24, 2025, and June 23, 2027, at which point Metaplanet will issue new shares and obtain exercise funds. To control equity dilution and market impact, Metaplanet may announce a suspension of exercise five trading days in advance or notify the repurchase of unexercised shares two weeks in advance.

Tax advantages constitute another core value: in Japan, stock capital gains and dividends are subject to a single tax rate of about 20%, while profits from spot Bitcoin trading are categorized as miscellaneous income, subject to a progressive national tax rate of 5%-45%, plus a 10% local resident tax ( and applicable additional taxes ), with a maximum combined tax rate of up to 55%. For investors in high tax brackets seeking exposure to Bitcoin, Metaplanet becomes an attractive alternative, especially since Japan has yet to approve the listing of a spot Bitcoin ETF.

Metaplanet has traditionally traded at a high mNAV multiple, usually exceeding 5×, and even climbing to 20× at one point, far higher than other major holders. Although this premium reflects investors' confidence in its financing structure, tax advantages, and optimized Bitcoin returns, it also brings higher risks and may indicate that its stock price is being overhyped.

( Other Bitcoin reserve companies: Riding the SPAC wave

Many companies are competing to emulate MicroStrategy's Bitcoin reserve strategy. Notably, Twenty One Capital) ranked 3### and ProCap Financial( ranked 13) among SPAC companies, immediately becoming leading holders after completing complex fundraising structures during their mergers.

Twenty One Capital, Inc.

Co-founded by Strike CEO Jack Mallers. Twenty One's SPAC pathway combines a commitment to physical Bitcoin, PIPE and convertible note financing, as well as a two-step merger structure, allowing the company to have a fully funded reserve of 42,000 Bitcoins on its first day of listing on NASDAQ.

The transaction began with Tether and Bitfinex committing to provide 31,500 bitcoins to a private entity called NewCo, while Tether additionally invested $462 million to purchase bitcoins. A $200 million PIPE funds the SPAC trust, which is then merged into its subsidiary and issues Class A shares to SPAC and PIPE investors.

Meanwhile, NewCo completed the merger with the same merged subsidiary through a stock swap, exchanging Class A and Class B shares. At the same time, a $340 million convertible bond financing was directly injected into Twenty One. Twenty One then used the funds from the PIPE and the convertible bonds to buy back the previously promised Bitcoin from Tether and Bitfinex. SoftBank, as a strategic anchor, subscribed to equity equivalent to 10,500 Bitcoins, and if the final reserve does not reach the target of 42,000 Bitcoins, Tether will be responsible for making up the difference.

After the completion of the SPAC merger, the controlling interest in Twenty One will mainly be held by Tether and its affiliated exchange Bitfinex, while SoftBank Group will hold a significant minority stake.

Tether and Bitfinex each committed a large amount of Bitcoin in exchange for newly issued shares before the merger, ultimately holding controlling stakes of 42.8% for Tether and 16.0% for Bitfinex. SoftBank then purchased shares worth 10,500 Bitcoins at the same price, acquiring a similar proportion of shares of 24.0%. In contrast, the cash from the SPAC trust was about 100 million dollars and had less ownership in PIPE and convertible bonds.

ProCap BTC(PCAP)

ProCap Financial has raised a total of $1.008 billion to launch its Bitcoin reserve platform, of which $256 million comes from the SPAC trust ( assuming minimal redemption amounts ), $517 million from preferred stock PIPE, and $235 million from zero-interest, preferred secured convertible bond rounds. Nearly 95% of the total fundraising amount ( $1.95 billion ) has been immediately invested in acquiring 9,498 Bitcoins.

Public SPAC shareholders will exchange $256 million in the trust for 25 million shares, accounting for 19.7%; led by Magnetar Capital, ParaFi, Blockchain.com Ventures, Arrington Capital, Woodline Partners, Anson Funds, RK Capital, Off the Chain Capital, FalconX, and BSQ Capital, $517 million in preferred stock PIPE is underwritten for 63.5 million shares, accounting for 50.1%; $235 million in zero-interest, preferred secured convertible bonds will rotate into 18.1 million shares, accounting for 14.3%; Inflection Points Inc. will swap its existing shares and additionally invest $8.5 million in equity subscription, receiving 11.1 million shares, accounting for 8.7%; the SPAC sponsors will retain 9 million shares as promote, accounting for 7.1%.

Despite the generally poor performance of SPAC projects, Bitcoin reserve SPACs are still highly regarded for their transparency in shareholding and cost basis. Their S-1/S-4 filing documents thoroughly disclose the cash contributions, equity distribution, and the value of physical Bitcoin contributions from all parties involved. For example, 21 Capital's $200 million PIPE financing corresponds to an exercise price of $10 per share, and the $385 million zero-coupon convertible bonds convert at $13 per share, clearly listing the number of shares before and after conversion. Since these companies have a similar "acquire and hold Bitcoin" business model, such disclosures provide investors with valuable information.