Investment firm Metaplanet has seen a significant increase in its shares, rising 158% in the past week and becoming the highest gainer among Japanese stocks. The company’s share price is currently at 93 Japanese yen, marking a 127% increase in just two days. This growth has led to multiple trading halts on the Tokyo Stock Exchange due to the rapid surge. With a market cap of nearly $1 billion, Metaplanet is making a substantial impact in the financial market.
Metaplanet has followed in the footsteps of MicroStrategy, the largest corporate holder of Bitcoin, in its investment strategy. Since announcing its Bitcoin investment strategy, Metaplanet has acquired 117.7 Bitcoin, worth $7.2 million, leading to a 389% increase in its stock price. The company intends to strategically use various capital market instruments to enhance its Bitcoin reserves, similar to MicroStrategy. This move is seen as a response to Japan’s high debt-to-GDP ratio of 261% and the rapid depreciation of the Japanese yen against the US dollar.
Despite being traded solely on the Tokyo Stock Exchange currently, Metaplanet is planning to tokenize its shares on the Bitcoin layer-2 network Liquid, allowing for wider access to U.S. investors. This decision comes as a response to Japan’s low-interest-rate environment and the impact it has had on the Japanese yen. With Bitcoin seen as a hedge against inflation and a source of long-term capital appreciation, Metaplanet aims to diversify its treasury assets and reduce its exposure to the yen’s vulnerability.
Several major corporate investors in Bitcoin, including MicroStrategy, have seen significant profits as a result of their investments. MicroStrategy’s total valuation now exceeds $12.57 billion at current market prices, with unrealized profits amounting to nearly $6.5 billion. This demonstrates a gain of almost 104% year-to-date from an investment started in 2020. While Bitcoin is currently trading at around $69,000, down by more than 3% in the past day, it remains close to its all-time high of $73,750 recorded on March 14.
The success of corporate investors in Bitcoin, like MicroStrategy and Metaplanet, highlights the growing trend of using the digital currency as a hedge against economic uncertainties. As companies look to diversify their treasury assets and minimize exposure to fiat currencies like the Japanese yen, Bitcoin provides a potential solution with its store of value properties and potential for capital appreciation. By incorporating Bitcoin into their investment strategies, these firms are positioning themselves for long-term financial resilience and growth.
Overall, the surge in Metaplanet’s shares, driven by its adoption of a Bitcoin investment strategy, reflects a larger trend among corporate investors seeking to leverage the digital currency’s unique properties. With plans to tokenize its shares on the Bitcoin network and diversify its treasury assets, Metaplanet is aligning itself with companies like MicroStrategy in using Bitcoin as a hedge against economic pressures. As Bitcoin continues to gain mainstream acceptance and adoption, more companies may follow suit in incorporating the digital currency into their investment portfolios.
