digital assets

HODL1 Medium-Term Business Plan 2026 Goals

HODL1 is a Japanese firm specializing in Web3 and blockchain technology. The company’s primary operations are divided into two segments: the HODL business, which focuses on the long-term accumulation and management of Ethereum, and the BUIDL business, which provides consulting and development support for decentralized projects. By utilizing AI-driven operations and avoiding dilutive financing methods, the firm aims to maximize shareholder value while contributing to the stability of the digital finance ecosystem. Their financial roadmap through 2028 targets 30 billion yen in Ethereum holdings and significant growth in operating profit. The medium-term management plan also analyzes the shifting global regulatory landscape, noting that a transition from speculation to practical utility will drive the adoption of programmable money in Japan. Overall, HODL1 seeks to bridge the gap between traditional finance and the on-chain economy through technical innovation and strategic asset holding.

The unveiling of the "HODL & BUIDL 2028" mid-term management plan is a high-stakes survival-to-recovery mandate born from a period of asset depletion and governance failure unprecedented in the history of the Tokyo Stock Exchange. Following a systemic crisis that brought the firm to the precipice of dissolution, the new management team is pivoting toward a dual-pillar strategy designed to restore market trust by establishing a dominant position in the "on-chain" financial ecosystem.

1. The Reconstruction Mandate: Recovery from Unprecedented Asset Depletion

This management plan carries a historical weight rarely seen in the Standard Market. It serves as a definitive break from the "Year of Turmoil" (December 2023 – October 2024), a period characterized by catastrophic corporate instability. This is a roadmap for corporate resurrection following a crisis that left the company in a state "equivalent to corporate liquidation."

Chronicle of the Crisis

The corporate emergency reached its zenith in February 2025. According to internal investigations, former management—linked to the Seekedge Group—siphoned off nearly all corporate assets, valued at over 3 billion JPY. This was achieved through "substitute performance" (代物弁済), a maneuver that effectively stripped HODL1 of its operational subsidiaries, including its interest in the Zaif exchange license and the technical powerhouse Turinngum. This asset drain rendered the company's previous "Plan B"—which relied on Zaif’s infrastructure—entirely non-viable, necessitating the current "Plan C" reconstruction.

The Judicial Turnaround

The path to recovery was cleared by a historic legal intervention. In April 2025, in a first for a listed company in Japan, the court ordered the dismissal of the previous management team. This judicial reset was the catalyst for the current "HODL & BUIDL" directive. By excising the influence of the Seekedge Group, HODL1 has been transformed from a depleted shell into a focused entity dedicated to blockchain infrastructure and high-conviction asset management.

2. Strategic Pillar I: The HODL Business (Asset Accumulation & Yield)

The first pillar of the reconstruction strategy is the "HODL" business, focusing on the aggressive accumulation and management of Ethereum (ETH). Management has selected ETH as its core treasury asset over Bitcoin due to its status as a programmable financial layer. This represents a strategic pivot from speculative trading toward institutional-grade treasury management.

Investment & Yield Mechanics

HODL1 has committed to a policy of acquiring ETH without relying on highly dilutive Moving Strike Warrants, instead leveraging market-raised funds for disciplined accumulation. Unlike passive holding, HODL1 views ETH as a productive capital asset. By utilizing staking and lending protocols, the company intends to generate steady recurring income. Crucially, the company is integrating AI utilization to optimize corporate operations, ensuring that treasury yield is maximized for shareholder returns rather than consumed by administrative overhead.

Technical Superiority of Ethereum

The choice of ETH is a bet on technical utility. Management highlights that ETH’s support for "complex financial logic" and the "x402 protocol" allows for AI Agent autonomous transactions—capabilities Bitcoin currently lacks. With a 10-year record of zero downtime and a massive ecosystem, ETH is positioned as the primary settlement layer for the digital finance era.

Risk Mitigation

To prevent further capital erosion, the company maintains a strict cost structure focusing on institutional-grade wallet security and transaction fee optimization. The inherent volatility of ETH is hedged by the "BUIDL" segment, which provides the technical and financial credibility required to maintain long-term positions even during market downturns.

3. Strategic Pillar II: The BUIDL Business (Infrastructure & Implementation)

The "BUIDL" business serves as the operational engine of HODL1, capturing "Real Demand" in the blockchain sector. While the HODL segment captures market upside, BUIDL acts as the stable cash-flow engine that offsets crypto-asset volatility.

Service Offerings & Revenue Model

HODL1 provides high-end consultancy and technical implementation, favoring "quasi-delegation" (準委任契約) contracts. These agreements provide predictable monthly revenue by embedding HODL1’s specialists into client projects. The revenue model is designed to cover the firm’s fixed costs, ensuring that ETH holdings can grow unencumbered by operational needs.

Track Record & Specialized Verticals

HODL1’s competitive advantage is rooted in a specialized track record that few domestic firms can match:

Institutional Implementation: Research and launch support for new L1 chains and listing support on overseas exchanges.
GameFi & IP: Supporting major gaming firms with tokenomics design and NFT/INO (Initial NFT Offering) issuance.
Financial Verticals: A strategic focus on the "on-chaining" of traditional assets, particularly within the financial and Intellectual Property sectors.

This internal capability creates a unique feedback loop: BUIDL provides the technical knowledge to manage HODL assets, while the HODL treasury provides the financial proof-of-concept to attract BUIDL clients.

4. Market Environment: The Shift to On-Chain Finance

HODL1’s strategy is predicated on the belief that the market is currently in the "Emerging/Dawn" (黎明期) phase of the Gartner Hype Cycle. By positioning itself during this early stage, HODL1 aims to capture the maximum upside as the market moves from speculation to utility-driven "on-chain finance."

Global Trends vs. Domestic Regulation

The following analysis highlights the convergence of global innovation and Japan's evolving regulatory framework:

The "Comprehensive Strength" Differentiator

HODL1 argues that successful execution in this environment requires "Comprehensive Strength" (総合力). The company distinguishes itself from traditional IT firms through a four-fold integration:

Technical Implementation (L2 and public chains),
Financial Business Understanding (custody and settlement laws),
Regulatory Compliance (maintaining listed-tier internal controls), and
Operational Know-how (gas fee and liquidity management).

5. Financial Roadmap & Phased Implementation (2026–2031+)

The primary objective of this roadmap is the removal of the "Going Concern" (GC) uncertainty that has shadowed the company since the Seekedge-era asset drain.

2028 Financial Targets

By the fiscal year ending October 2028, HODL1 has set aggressive, bolded targets:

Ethereum Holdings: 300 Billion JPY.
Net Sales: 2 Billion JPY (800M from BUIDL; 1.2B from HODL operations).
Operating Profit: 1.1 Billion JPY.

The Three-Phase Evolution

Management has outlined a disciplined trajectory to restore shareholder value:

Phase 1: Corporate Reconstruction (2026–2028)
- Focus: Stabilizing governance, removing GC notes, and establishing the technical/financial base.
- Goal: Becoming Japan’s premier domestic firm for Ethereum-related technology.
Phase 2: Growth (2029–2031)
- Focus: Leveraging crypto-exchange or brokerage licenses to create new financial service streams.
- Goal: Talent cultivation and scaling the BUIDL consultancy to mid-market dominance.
Phase 3: Breakthrough (2031 and beyond)
- The Strategic Shift: This phase represents the "Holy Grail" of the HODL1 strategy. The company intends to transition from capital-raise-funded ETH purchases to acquisitions funded entirely by treasury yield and BUIDL business profits.

Through this phased approach, HODL1 aims to transform its narrative from a victim of corporate malfeasance to a cornerstone of Japan’s digital financial infrastructure, effectively linking the growth of the Ethereum network to long-term shareholder value.