Bitcoin legend Adam Back invests in Metaplanet: all companies will eventually be "Bitcoinized"

When discussing the key figures in the history of Bitcoin, Adam Back undoubtedly ranks among the top, regarded as one of the most influential legends. Adam Back is not only a core member of the early Cypherpunk movement but also the only real person cited by Bitcoin's founder Satoshi Nakamoto in the "Bitcoin White Paper" ( note 1). Moreover, Charles Hoskinson, co-founder of Ethereum and Cardano, pointed out in an interview that he is indeed the real Satoshi Nakamoto. The Hashcash system invented by Back became the predecessor to Bitcoin's PoW proof-of-work mechanism. He is also the co-founder and CEO of Blockstream, a company focused on Bitcoin blockchain infrastructure, and a venture capitalist who has long promoted Bitcoin infrastructure and Lightning Network financial applications, investing in companies such as MetaPlanet, which transformed from a well-known hotel in Japan into a Bitcoin financial company, and Capital B in France.

In a recent interview, Adam Back shared his observations on the trend of many companies following the footsteps of Strategy by transforming into Bitcoin financial companies. He pointed out that the actions of Strategy, led by Michael Saylor, to incorporate Bitcoin into their balance sheet is not just a strategic choice for a single company, but could potentially become an innovative model for asset management in this century.

Bitcoin has become the core of corporate asset allocation.

Adam Back has been involved in the investment market since the 1990s, transitioning from a cryptopunk geek engineer to a financial market trader, and then to a capitalist. His life is closely tied to technology and finance, making him an important proponent of Bitcoin finance, with a keen foresight in observing the financial markets.

Adam Back pointed out that Michael Saylor initially just hoped to use Bitcoin to combat inflation and protect the company's cash reserves, but this strategy quickly evolved into a more aggressive capital market operation model, which involves continuously purchasing Bitcoin through financing, issuing stocks or bonds. Back stated that if companies want to maintain a balanced balance sheet, the simplest way is to buy Bitcoin.

This financial strategy logic utilizes leverage tools in the capital markets to increase the value of each Bitcoin share, distributing earnings between core business development and continuous accumulation of Bitcoin. This new type of asset structure can provide the enterprise with long-term financial advantages.

Bitcoin is the touchstone of the investment market.

Back believes that Bitcoin still has systemic mispricing, thus creating rich arbitrage opportunities for the capital market. He pointed out that everyone who invests in Bitcoin is participating in the arbitrage process between Bitcoin being undervalued and its true potential value, and everyone can regard themselves as a "sole proprietor" as well as a company, directly holding Bitcoin.

Bitcoin can transcend global markets.

In the global capital markets, Adam Back is gradually expanding his business layout, including investments in Japan's MetaPlanet, France's Capital B, and other new financial companies in European markets. He has observed the tax and regulatory policies of different countries, which provide rich arbitrage and investment opportunities. In Japan, there is a lack of Bitcoin ETFs, but investing in stocks still enjoys certain tax benefits, which provides a relatively more favorable entry window for companies holding Bitcoin, such as MetaPlanet.

Innovative financing methods: from convertible bonds, ATMs to preferred stocks

Back detailed the various innovative financing tools that Bitcoin financial companies can adopt, including Convertible Notes (Convertible Notes(, for example, Strategy sells bonds at a 50% conversion premium to raise funds to buy Bitcoin. At-the-Market Offerings abbreviated as ATM) allow companies to issue existing shares to the secondary market at market price to raise funds, or Preferred Shares (Preferred Shares), Strategy's STRC is an example, raising over $2 billion in one go. These tools not only expand the company's Bitcoin holdings but also avoid significant dilution of existing shareholders' rights, making them a core means of expanding Bitcoin financial strategies.

Adam Back's quantitative assessment method: using MNAV as the core indicator

As a seasoned investor, Back proposed a quantitative analysis framework called Market Value To Net Asset Value (abbreviated as MNAV )). He explained that this indicator measures how many times the price-to-book ratio (PB Ratio) you are willing to pay to purchase a financial company and how long it will take to break even through the growth of Bitcoin's per-share value.

For example, the previous MNAV coverage period for Strategy was about 18 months, while MetaPlanet was only 5 to 6 months, indicating a better risk-return structure. This quantitative tool helps investors assess the valuation rationality and risk level of different Bitcoin financial companies, avoiding over-reliance on market capitalization or emotional judgments.

Enterprises will ultimately be "Bitcoinized".

Back emphasizes Bitcoin as a form of autonomous, trustless, and censorship-resistant currency. Its appeal comes not only from the technology itself but also from its potential to become a new tool in the capital markets. Eventually, every company will become a Bitcoin financial company, which is scalable, sustainable, and has a positive reinforcing economic trend. He believes that companies achieve asset allocation through Bitcoin, which is not only a financial strategy but also symbolizes further practices of sovereignty, decentralization, and economic freedom.

From early cryptopunk advocates to capitalists

As one of the early advocates of Bitcoin, Adam Back is well aware of the subtle relationship between decentralization and free markets. When he was asked by host Tyler Evans about the issue of many early Cypher Punks in the community opposing the current development of Bitcoin, he responded that the electronic cash theory originally advocated by Cypher Punks was to prove that the public could own stable assets, similar to the concept of stablecoins (1:1 equivalent to USD) (. However, Bitcoin is moving towards a larger and more "scalable" direction. Bitcoin can change the way today's economic market operates, such as being anti-inflationary, serving as collateral leverage tools, and asset reserves, among others. Although some in the community oppose or are skeptical about corporate "Bitcoinization," this is precisely the necessary process to change the economic market. Bitcoin OGs do not need to reject companies adopting Bitcoin as an asset reserve; everyone can use Bitcoin to become a company owner. Each community can also use Bitcoin reserves as the capital to operate a company. Bitcoin can become a tool beyond fiat currency, which is the way to promote economic freedom.

Note 1: The only living person cited in Satoshi Nakamoto's Bitcoin White Paper (Bitcoin: A Peer-to-Peer Electronic Cash System) is Adam Back, the founder of Hashcash, whose name is mentioned in the sixth note of the Proof-of-Work on page 3 of the Bitcoin White Paper. The Bitcoin Proof of Work is built upon the foundation of Hashcash.

This article Bitcoin legend Adam Back invests in Metaplanet: all companies will eventually be "Bitcoinized" first appeared on Chain News ABMedia.