Metaplanet Becomes Leading Performer in Japanese Equities Following Inclusion of Bitcoin in Reserves

Investment firm Metaplanet has witnessed an extraordinary increase in its shares, soaring 158% over the last week and becoming the top performer among all Japanese stocks.

The current share price of the company is 93 Japanese yen, reflecting an astonishing 127% rise in just two days.

This rapid escalation prompted the Tokyo Stock Exchange to implement a circuit breaker trading halt multiple times during the past week.

With a market capitalization nearing $1 billion (14.8 billion Japanese yen), Metaplanet is making significant impacts in the financial sector.

Metaplanet Mirrors MicroStrategy’s Strategy

This achievement can be linked to the company’s adoption of a strategy akin to that of MicroStrategy, the largest corporate holder of Bitcoin.

Since it announced its Bitcoin investment strategy on April 8, Metaplanet has acquired 117.7 Bitcoin, currently valued at $7.2 million. As a result, its stock has surged by 389%.

In a statement released on May 13, Metaplanet disclosed its plans to utilize various capital market instruments strategically to enhance its Bitcoin reserves, emulating MicroStrategy’s method.

The firm pointed to the necessity of hedging against Japan’s escalating debt burden and the swift depreciation of the Japanese yen.

Japan unfortunately holds the distinction of having the highest debt-to-GDP ratio among developed nations, currently at 261%.

Moreover, the Japanese yen has depreciated by over 34% against the United States dollar since the start of 2021.

Metaplanet perceives its Bitcoin investment strategy as a direct reaction to these economic challenges.

While Metaplanet is presently only available for trading on the Tokyo Stock Exchange, which restricts access for U.S. investors, there are plans in motion to tokenize its shares on the Bitcoin layer-2 network Liquid.

Arnab Naskar, one of the founders of the security token platform STOKR, has indicated intentions to tokenize Metaplanet shares, following a similar method used for tokenizing MicroStrategy stock.

Last month, Metaplanet announced its decision to integrate Bitcoin into its treasury assets due to several considerations.

Primarily, it seeks to reduce its exposure to the Japanese yen, which has been heavily affected by Japan’s low-interest-rate climate.

In a shareholder update, Metaplanet expressed concerns regarding the yen’s susceptibility and emphasized Bitcoin’s potential as a hedge against inflation, a means for macroeconomic resilience, and a source of long-term capital growth.

Corporate Bitcoin Holders Begin to Reap Benefits

A number of significant corporate investors in Bitcoin, including MicroStrategy, have already experienced substantial profit increases.

According to data compiled by Saylortracker, at current market prices of approximately $65,000, MicroStrategy’s holdings now represent a total valuation exceeding $12.57 billion.

This indicates that the company possesses considerable unrealized profits of nearly $6.5 billion on paper – reflecting a gain of almost 104% yield-to-date from an investment allocation initiated under Saylor back in 2020.

Currently, Bitcoin is trading at around $69,000, down by more than 3% over the past day.

The leading cryptocurrency is 5% away from its all-time high of $73,750 recorded on March 14.

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