Edgen Crypto·Nov 20 2025, 12:34
[1] BTC Miners are the Biggest Beneficiaries of Stellar NVIDIA Earnings (https://www.coindesk.com/markets/2025/11/20/a ...)[2] Bitcoin Preemptively "Surrenders," Market Quietly Awaits Nvidia's ... (https://www.theblockbeats.info/en/news/60241 ...)[3] Nasdaq Futures Gain With All Eyes on Nvidia Earnings - Scott Coop (https://www.scottcoop.com/news/story/36202105 ...)
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Nov 20 2025, 14:38
Metaplanet to Raise $135M via Preferred Shares for Bitcoin Treasury Expansion
## Executive Summary Metaplanet (TYO: 3350), a Tokyo-listed investment firm and Japan's largest corporate holder of **Bitcoin**, has announced a plan to raise approximately $135 million to expand its **Bitcoin** treasury. The capital will be generated through the issuance of Class B perpetual preferred shares under its newly established "Mercury program." This initiative is the first step under a broader shelf registration authorizing up to ¥555 billion ($3.7 billion) in preferred share offerings. The strategy closely emulates the model pioneered by U.S. firm **MicroStrategy** (**MSTR**) but introduces a unique focus on integrating **Bitcoin** into Japan's institutional fixed-income markets. ## The Financial Mechanics of the Capital Raise The financing is structured as an issuance of 23.6 million Class B shares at a price of 900 yen ($5.71) per share. The instrument of choice is perpetual preferred shares, a type of equity that carries no maturity date and offers a fixed dividend, which in this case is capped at 6%. This allows **Metaplanet** to secure long-term capital for its **Bitcoin** acquisition strategy without diluting the voting power of its common stockholders. The current offering is part of a much larger strategic financing plan, enabled by a shelf registration that permits the company to issue up to $3.7 billion in Class A and Class B perpetual preferred shares over the next two years. ## Business Strategy and Market Positioning **Metaplanet**'s strategy is a clear adoption of the playbook developed by **MicroStrategy**, which has successfully used various debt and equity instruments, including preferred stock with dividend yields between 8-10%, to accumulate a treasury of over 641,000 BTC. **Metaplanet** is tailoring this approach for the Japanese market with a distinct innovation. According to Dylan LeClair, the company's head of bitcoin strategy, the goal extends beyond mere accumulation. **Metaplanet** intends to develop a "bitcoin-backed yield curve." This initiative is designed to create a framework for pricing **Bitcoin**-collateralized instruments, which would provide a familiar structure for Japanese institutional investors to gain exposure to the asset class. By creating a BTC-denominated credit market, the firm aims to position itself as a bridge between the digital asset ecosystem and Japan's conservative financial institutions. ## Broader Market Implications The move by **Metaplanet** is a significant indicator of the growing trend of using corporate balance sheets to acquire **Bitcoin**. Its execution within Japan's highly regulated and sophisticated financial system adds considerable weight to this narrative. Should the company succeed in establishing a functional **Bitcoin**-backed yield curve, it could create a pioneering model for integrating digital assets into traditional fixed-income markets globally. This strategy presents a different facet of institutional adoption compared to other prevalent models. While offerings like the **ProShares Bitcoin Strategy ETF** provide market access through futures contracts and companies like **Mastercard** facilitate crypto payments, **Metaplanet** is treating **Bitcoin** as a core treasury and collateral asset. Success in this venture could unlock a new wave of institutional capital by presenting **Bitcoin** in the familiar format of a yield-bearing instrument, further legitimizing its role in corporate finance.
Nov 20 2025, 14:21
Infrastructure Capital Analyst Projects Four Fed Rate Cuts in 2025 Under New Chair
## Executive Summary Jay Hatfield, CEO of **Infrastructure Capital Advisors**, projects that the Federal Reserve will maintain its current interest rate stance through December but will pivot to a significant easing cycle next year. The forecast anticipates four distinct rate cuts, contingent on a change in leadership at the central bank. This policy shift is expected to stabilize long-term Treasury yields and provide a tailwind for equity markets. ## The Event in Detail In a recent analysis, Jay Hatfield outlined a two-stage outlook for Federal Reserve policy. The immediate forecast is for the Federal Open Market Committee (FOMC) to hold rates steady at its December meeting, continuing its current "hawkish" pause. The more significant projection concerns the following year, where Hatfield expects a new, incoming Federal Reserve Chairman to initiate a series of four rate reductions. This diverges from more conservative estimates, such as those from **J.P. Morgan Global Research**, which projects two cuts in 2025 and one in 2026. ## Market Implications Hatfield's forecast suggests a direct impact on fixed-income and equity markets. The primary effect of the anticipated rate cuts would be to anchor the 10-year Treasury yield at approximately 4%. A stable, lower yield environment is generally favorable for the stock market, as it reduces borrowing costs for corporations and can lead to higher valuation multiples for equities. The current Fed funds rate stands at a target range of 4.25% to 4.5%, meaning four cuts would represent a substantial monetary policy reversal. ## Expert Commentary The strategic rationale behind this forecast is tied to a predicted shift in the Federal Reserve's guiding economic philosophy. Hatfield stated his belief that a new Fed chair would be "more of a monetarist" and "less of a Keynesian." > "Everybody expects a new Fed chair to come along, who's going to be more of a monetarist, which we believe in, less of a Keynesian, less worried about tariffs, less worried about expectations, and cut rates." This implies a move away from managing economic output through fiscal activism and toward a focus on controlling the money supply to stabilize prices and foster predictable economic conditions. ## Broader Context The Federal Reserve recently cut its benchmark rate by 25 basis points in September, the first reduction in nine months, signaling a potential conclusion to its aggressive hiking cycle. However, market expectations remain varied. While Hatfield's prediction of four cuts is notably bullish, other market indicators, such as the **CME FedWatch Tool**, suggest high confidence in at least one cut by June 2025. Hatfield's projection stands out by tying the aggressive easing cycle directly to a change in leadership, framing it as a structural policy shift rather than a purely data-dependent response.
Nov 20 2025, 14:05
Cleveland Fed's Hammack Warns Further Rate Cuts Pose Financial Stability Risks
## Executive Summary **Cleveland Federal Reserve Bank** President Beth Hammack has publicly signaled her opposition to further interest rate cuts, arguing that such a move could jeopardize financial stability. In recent statements, Hammack expressed concerns that the current financial environment is already "quite loose" and that lowering credit costs further would be imprudent. Her commentary introduces a significant element of caution into the market's expectations for the Federal Reserve's monetary policy trajectory through 2025 and 2026, highlighting persistent inflation as a primary concern. ## The Event in Detail President Hammack articulated a hawkish stance, revealing she was against a recent decision by the central bank to cut rates. She characterized the current market landscape as being defined by rising stock prices and "loose" credit conditions. Her core argument is that further reducing the federal funds rate could "support high-risk lending," creating systemic risks. Hammack noted she is "a little bit nervous" about the current policy setting, suggesting that monetary policy is not sufficiently restrictive to ensure inflation returns to the central bank's target in a timely manner. ## Market Implications Hammack's comments are likely to temper investor optimism regarding a more accommodative monetary policy in the near future. Her explicit warning about financial stability risks could lead market participants to re-evaluate their exposure to riskier asset classes. The public dissent from a key Federal Reserve official adds a layer of uncertainty to the central bank's future rate path, potentially leading to increased volatility as traders digest the divided outlook within the committee. Her position suggests that the bar for future rate cuts may be higher than previously anticipated. ## Expert Commentary In her statements, President Hammack emphasized her unwavering focus on managing inflation, on which she is "laser focused." She has projected a longer timeline for achieving the Fed's goals than some market participants might expect. > "I think it will take two to three years to bring it back to the 2% target," she stated, referencing the persistent nature of current inflationary pressures. This outlook underpins her reluctance to "remove monetary restrictions" prematurely. Her preference is to hold rates steady to continue weighing on the economy and ensure that inflation is firmly on a downward path. She explicitly stated, "I would not want to cut rates into accommodative territory," reinforcing her commitment to maintaining a restrictive policy stance for the foreseeable future. ## Broader Context Hammack's warning comes at a time when a general sense of optimism has buoyed equity markets, partly on the expectation of future rate cuts. Her perspective serves as a direct challenge to that narrative, aligning with a more cautious, data-dependent approach. The concerns she raises about high-risk lending are particularly relevant in an environment where financial stocks and banking institutions are showing signs of sensitivity to economic shifts. Her stance reinforces the idea that the Federal Reserve's mandate to maintain financial stability will be a critical factor in its decisions, running in parallel with its dual mandate of maximum employment and price stability.