Metaplanet’s stock surged 4,000% in a year after adopting a Bitcoin-only strategy, mirroring MicroStrategy’s approach to hoarding BTC as a treasury asset.
The company’s switch to a “Bitcoin-first, Bitcoin-only” policy last year to hoard the cryptocurrency drives the spike.
Metaplanet, a Japanese hotel investor, has risen more than 4000% in the last 12 months, making it the country’s highest-gaining stock. The company’s switch to a “Bitcoin-first, Bitcoin-only” policy last year to hoard the cryptocurrency drives the spike.
Over the past year, Metaplanet Inc. has emerged as one of Japan’s top-performing stocks, according to Trading View statistics.
Michael Saylor’s Strategy, known initially as MicroStrategy, is replicated by Metaplanet. To boost their faltering share values, several businesses have been motivated by Strategy to purchase and store Bitcoin in their corporate coffers.
For example, according to new statistics from the crypto security company Coinkite, multinational pharmaceutical businesses are imitating Strategy by hoarding Bitcoin instead of cash.
Last September, software company Remixpoint Inc. in Japan also declared its intention to purchase ¥1.2 billion (about $8 million) worth of Bitcoin. Since then, the company’s stock has increased by more than 300%.
According to Mark Palmer, senior equity research analyst at The Benchmark Company, “Companies that have seen their stock struggle, often because their business models are not particularly compelling in the eyes of many investors, have opted to follow MicroStrategy’s lead,” he told Financial Times.
The All-Time High of Bitcoin Increases Metaplanet’s Stock
Another reason driving the value of equities held by Bitcoin hoarders was the cryptocurrency’s record-high following Trump’s endorsement. After Trump was sworn in, the most prominent cryptocurrency in the world shot up to $109,241 on January 20.
Since April 2024, Metaplanet has purchased 1,762 BTC, valued at $172.31 million, according to Bitcointreasuries.net. This year, the Japanese computer giant plans to increase its Bitcoin treasury to 10,000 BTC.
“By using the most accretive capital market tools at our disposal, we hope to increase our Bitcoin holdings to 10,000 BTC by 2025,” said Simon Gerovich, CEO of Metaplanet, on X.
The business also disclosed that Metaplanet’s stock grew by 500% in 2024, reaching around 50,000 shareholders. According to Bloomberg, Capital Group is one of its shareholders and has also invested in Strategy.
According to UK-based Storm Research managing director and Japan stock analyst Rhiannon Ewart-White, who spoke to Bloomberg, Metaplanet is highly exposed to the erratic retail market.
“They must ensure that shareholders are fully aware of their strategy,” he said.
Since direct Bitcoin transactions in Japan are subject to capital gains taxes of up to 55%, it is a suitable option for first-time and small-scale buyers.
