Metaplanet Targets 21,000 BTC Holdings

CRYPTO
Metaplanet Targets 21,000 BTC Holdings

Tokyo-listed Metaplanet Inc. announced plans to accumulate 10,000 bitcoin (BTC) by the end of 2025 and 21,000 BTC by the end of 2026, aiming to become one of the largest corporate bitcoin holders. The company, which currently holds over $180 million in assets, introduced its "21 Million Plan," a reference to bitcoin’s total supply.

This strategy involves issuing 21 million shares through moving strike warrants to raise approximately 116.65 billion yen ($740 million), marking one of Asia’s largest equity capital raises for bitcoin. To protect shareholder value, the company has set the exercise price at 100% of the prior day's closing price, avoiding dilution.

Metaplanet reported a 309.82% BTC Yield in Q4 2024, reinforcing its strategy. “Our benchmark is Bitcoin itself,” said Dylan LeClair, Director of Bitcoin Strategy. The stock rose 5% following the announcement, reflecting investor confidence in its aggressive accumulation plan.

FINANCE
DeepSeek Shakes U.S. Tech Market

The release of Chinese AI model DeepSeek-R1 caused a sharp selloff in the U.S. tech sector, with Nvidia losing 17% of its value and shedding $600 billion in market cap. DeepSeek’s ability to develop a cutting-edge AI model on a reported $6 million budget challenged existing assumptions about AI development costs, rattling major players like Alphabet, Amazon, and Microsoft.

Despite the market turmoil, analysts see DeepSeek’s innovations as an evolution rather than a disruption, with potential benefits for AI expansion and efficiency. The U.S. government is responding, with President Trump calling for increased investment in AI, including the $500 billion Stargate Project.

Skepticism remains over DeepSeek’s claims, with concerns it may have accessed restricted Nvidia H100 chips. While its innovations could be game-changing, competitors are expected to adopt similar techniques, potentially driving further AI advancements rather than undermining existing tech leaders in the long run.

FINANCE
Fed Holds Rates Amid Market Uncertainty

The Federal Reserve is set to announce its first policy decision of the year, with expectations that interest rates will remain unchanged. Traders in the Federal funds futures market overwhelmingly predict no rate cuts, reflecting the Fed’s cautious stance.

In December, the Fed hinted at a slower approach to easing, leading to a major market selloff. While investors previously anticipated four rate cuts in 2025, projections have since fallen to two. The latest CNBC survey shows 65% of respondents expect two cuts this year, down from 78% previously, amid lingering inflation concerns.

President Donald Trump’s economic policies, including tariffs and mass deportation efforts, are adding uncertainty. He has publicly pressured Fed Chair Jerome Powell for immediate rate cuts, signaling a potential shift in central bank independence.

Despite a strong economy, inflation remains above the Fed’s 2% target. Powell has urged caution, suggesting a new, more measured phase in monetary policy adjustments.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.