Convano Initiates Bitcoin Acquisition Strategy
Japanese nail salon operator Convano has officially launched a strategy aimed at acquiring Bitcoin (BTC), as part of its ambitious goal to secure about ¥434 billion (approximately $3 billion) to purchase 21,000 BTC, representing 0.1% of Bitcoin’s total supply. The company, which is listed in Tokyo, has revealed its intention to establish itself as one of the largest corporate holders of Bitcoin in the world. Taiyo Azuma, the director of Convano’s BTC Holding Strategy Office, has detailed a three-phase acquisition plan, with an initial target of acquiring 2,000 BTC by the end of 2025.
Strategic Response to Economic Challenges
Convano’s pivot towards Bitcoin is framed as a strategic maneuver in response to various macroeconomic pressures. Over the past decade, the yen has experienced a steady decline against the dollar, resulting in increased costs for wages and raw materials in its consumer services sector. Azuma explained to Bloomberg, “We began to consider Bitcoin due to ongoing yen depreciation and geopolitical uncertainties. Bitcoin serves as a long-term store of value.” So far, Convano has raised ¥4.5 billion through corporate bonds and has utilized these funds to acquire 365 Bitcoin.
Market Reaction and Performance
The announcement of Convano’s Bitcoin acquisition strategy has had a positive impact on its stock performance, with shares surging by 223.27% over the past month and an astonishing 1,414.68% increase year-to-date. Japan has emerged as an unexpected center for Bitcoin accumulation among publicly traded companies. Notably, Metaplanet Inc., previously a hotel operator, now holds nearly 19,000 Bitcoin, placing it among the top ten global Bitcoin holders. Currently, seven Japanese firms rank within the top 100 public companies holding BTC.
Concerns Over Sustainability of Crypto Strategies
Despite the optimistic outlook, the sustainability of such cryptocurrency treasury strategies is under scrutiny. Matthew Sigel, head of digital assets research at VanEck, cautioned that the Bitcoin treasury strategies adopted by public companies may be on “shaky ground,” with escalating risks that could erode shareholder value. Sigel noted that when stock prices significantly exceed the net asset value (NAV) of Bitcoin holdings, issuing new equity can create premiums. However, as stock prices near parity with Bitcoin’s value, dilution becomes a concern, which he describes as “erosion” rather than capital formation.
Expert Opinions on Bitcoin Treasury Viability
James Check, a leading analyst at Glassnode, echoed similar concerns regarding the longevity of corporate Bitcoin treasury strategies. He expressed skepticism about the sustainability of these strategies, stating, “My instinct is that the Bitcoin treasury strategy has a far shorter lifespan than most anticipate.” Check pointed out that while early adopters like MicroStrategy, which holds nearly 600,000 BTC, have solidified their positions, newer treasury firms face increasing challenges. He remarked, “Nobody wants the 50th treasury company,” indicating that investors are beginning to demand a distinct competitive edge rather than merely adding Bitcoin to a company’s balance sheet.
