Metaplanet’s $130M Bitcoin-Backed Gamble: Doubling Down on Digital Gold!
Breaking: Japanese investment firm Metaplanet just placed a massive bet on Bitcoin—using Bitcoin itself as collateral.
The Ultimate Crypto Flex
In a move that's sending shockwaves through traditional finance circles, Metaplanet secured $130 million in debt by putting up its Bitcoin holdings as security. The purpose? To buy more Bitcoin. It's the financial equivalent of using your gold bars to borrow money to buy more gold bars—only digital and way more controversial.
Wall Street Meets Crypto Street
This isn't just another corporate treasury allocation. By leveraging existing Bitcoin to acquire more, Metaplanet demonstrates unprecedented conviction in the digital asset's long-term value proposition. While traditional analysts scratch their heads about 'circular logic,' crypto natives recognize the strategic genius—using legacy financial instruments to accelerate Bitcoin accumulation.
The Cynical Take
Because nothing says 'stable investment' like borrowing nine figures against a famously volatile asset to buy more of that same famously volatile asset. Wall Street bankers are probably simultaneously horrified and jealous they didn't think of it first.
Love it or hate it, Metaplanet just wrote the playbook for corporate Bitcoin maximalism—and traditional finance is scrambling to understand the new rules.
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Google Seeks to Rival Nvidia with TPUs
According to reports, Meta may adopt Google’s Tensor Processing Units (TPUs) — in-house chips built by Google for AI and machine learning– in its data centers starting from as early as 2027. Google is also looking to secure a TPU rental agreement with Meta starting from next year.
Such an arrangement could serve as a key validator for Alphabet’s AI chip technology, boosting its effort to compete with heavyweight chip designer Nvidia (NVDA). Nvidia’s shares are still falling on the news as Meta relies heavily on Nvidia’s graphics processing units for its AI systems.
Here’s Why This Top Analyst Is Unmoved
However, reacting to the development, Luria reaffirmed his Neutral (Hold) rating on GOOGL, with an average price target of $300 that implies over 6% downside from the current levels. The analyst believes the development simply indicates an increased demand for the chips.
“This is just one additional data point we’ve gotten over the past several months, indicating that there is increasing demand for Google’s TPUs, especially from frontier lab customers,” Luria explained. He added that the move also shows that Google has become more receptive to the idea of releasing the in-house chips for outside use.
As a five-star analyst, Luria ranks 636 out of over 10,000 analysts on Wall Street. He also has a success rate of 54% and an average return of nearly 14%, as the image below shows.
Is GOOGL Stock a Good Buy?
However, while Luria appears bearish on GOOGL, the sentiment on Alphabet across the broader Wall Street remains very upbeat, even as the tech giant nears $4 trillion in market capitalization, riding on several factors, including its AI efforts.
Google’s shares currently boast a Strong Buy consensus rating based on 31 Buys and seven Holds issued by analysts over the past three months. However, the average GOOGL price target of $312 implies over 2% downside risk from the current levels.
