Investment firm Metaplanet has recently experienced a surge in its shares, with prices skyrocketing 158% over the past week, making it the highest gainer among all Japanese stocks. The company’s share price currently stands at 93 Japanese yen, showcasing a staggering 127% increase in just two days. This rapid growth led to the Tokyo Stock Exchange activating a circuit breaker trading halt multiple times within the week, with Metaplanet’s market cap reaching nearly $1 billion (14.8 billion Japanese yen), creating significant waves in the financial market.
Metaplanet’s success can be attributed to its adoption of a strategy similar to that of MicroStrategy, the largest corporate holder of Bitcoin. Following its announcement of a Bitcoin investment strategy in April, Metaplanet has accumulated 117.7 Bitcoin, valued at $7.2 million, leading to a 389% surge in its stock price. The company revealed its intention to utilize various capital market instruments strategically to bolster its Bitcoin reserves, aligning with MicroStrategy’s approach. This move was driven by the need to hedge against Japan’s rising debt burden and the devaluation of the Japanese yen.
Japan, with the worst debt-to-GDP ratio among developed countries at 261%, has seen its currency depreciate by over 34% against the US dollar since the beginning of 2021. Metaplanet views its Bitcoin investment strategy as a response to these economic pressures, aiming to minimize exposure to the vulnerable Japanese yen. Plans are in motion to tokenize Metaplanet shares on the Bitcoin layer-2 network Liquid, potentially expanding access to US investors. Arnab Naskar, a founder of STOKR, expressed intentions to tokenize Metaplanet shares following the model used with MicroStrategy stock.
Last month, Metaplanet made the decision to include Bitcoin in its treasury assets to address several concerns. The company seeks to minimize exposure to the impact of Japan’s low-interest-rate environment on the yen and views Bitcoin as a hedge against inflation, a tool for macroeconomic resilience, and a source of long-term capital appreciation. Major corporate investors in Bitcoin, including MicroStrategy, have reaped significant rewards as the leading cryptocurrency continues to perform well in the market. At a current market price of around $65,000, MicroStrategy has realized unrealized profits exceeding $6.5 billion – reflecting a gain of almost 104% yield-to-date from an investment allocation initiated in 2020.
As of now, Bitcoin is trading at around $69,000, slightly down from previous levels, and is 5% away from its all-time high reached on March 14 at $73,750. Corporate Bitcoin holders are starting to see substantial returns on their investments, with companies like MicroStrategy leading the way in leveraging the potential of the cryptocurrency market. Metaplanet’s strategy of incorporating Bitcoin into its treasury assets reflects a growing trend among corporate entities seeking to diversify and protect their capital amid economic uncertainties. With plans to tokenize its shares on the Bitcoin network, Metaplanet aims to increase accessibility to investors, mirroring successful strategies implemented by other corporate Bitcoin holders.
