Japan’s Metaplanet Surges 90% On Bitcoin Investment Copying MicroStrategy

Tokyo-listed Metaplanet, a Web3 infrastructure provider, experienced a remarkable surge in its stock, climbing nearly 90% over a span of just two days. The surge followed the company’s announcement of incorporating $6.56 million (JPY 1 billion) worth of bitcoin into its balance sheet in collaboration with Sora Ventures, Mark Yusko of Morgan Creek Capital, and other partners.

Simon Gerovich, CEO of Metaplanet Inc., conveyed his excitement for this strategic decision, remarking “I am thrilled to lead Metaplanet as we take a bold step into the future, committing an initial JPY 1 billion to Bitcoin as our core treasury asset going forward. Thanks to the support from our partners and investors. I’m proud of our pioneering spirit and excited for what lies ahead.”

In an announcement shared on April 8 via the social media platform X (fka Twitter), Metaplanet characterized this move as a pivotal part of its revolutionary shift in financial strategy.

Originally established as a budget hotel operator under the name Red Planet, Metaplanet transitioned into a Web3 software developer. The recent decision to diversify its assets with bitcoin is aimed at minimizing exposure to the Japanese yen.

“This strategic pivot is not just about embracing digital assets but also about pioneering a future where finance meets innovation at its core…Our transition to Bitcoin is a significant milestone in our mission to lead in the digital finance era and positions Metaplanet as a pioneer in the adoption of digital assets in Japan,” the company said.

The Japanese firm conveyed to its shareholders that the prolonged low-interest-rate environment in Japan has weakened the yen’s status as a global currency. In response to this, the Bank of Japan implemented its first interest rate increase in 17 years in March, raising short-term rates to 0-0.1% from minus 0.1%.

In an update to its shareholders, Metaplanet articulated that the move to integrate bitcoin into its treasury assets is driven by a comprehensive recognition of its potential as a hedge against inflation, a tool for macroeconomic resilience, and a foundation for long-term capital appreciation.

This strategy reflects a similar approach taken by MicroStrategy (Nasdaq: MSTR) which began accumulating bitcoin holdings in 2020. MicroStrategy’s stock price has frequently mirrored the fluctuations in bitcoin’s value, reflecting investor sentiment toward the cryptocurrency market.

Currently, MicroStrategy stands as the largest corporate owner of bitcoin, holding over 214,000 bitcoins valued at more than $15 billion.

Despite its market capitalization being notably smaller than that of MicroStrategy, standing at $28 million (4.27 billion JPY), Metaplanet’s stock witnessed a surge of 90% following the announcement of its bitcoin investment.

Jason Fang, the founder of Sora Ventures, lauded Metaplanet’s move as “Asia’s first MicroStrategy,” underscoring, “The product will enable Japanese to gain exposure to bitcoin without paying an unrealized gains tax that could go as high as 55%. It will also enable anyone with an account to Tokyo Stock Exchange to gain exposure to bitcoin without any regulatory risks.”

The controversial tax policy regarding crypto assets has been a subject of debate among lawmakers and underwent modifications since its introduction. Notably, in June 2023, Japan’s National Tax Agency announced exemptions for tokens issued by crypto startups from these tax regulations.

As of the latest data from CoinDesk Indices, Bitcoin is trading around $70,500, showcasing its continued strength and relevance in the digital asset landscape.

Information for this briefing was found via CoinDesk, Crypto Daily, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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