Metaplanet, a Web3 infrastructure provider, recently saw a significant increase in its Tokyo-listed stock price, rising by nearly 90% in just two days after adding $6.56 million worth of Bitcoin to its balance sheet. The company’s shares are currently trading at 36 yens, up by 89%. The move to add Bitcoin to its balance sheet was done in collaboration with partners such as Sora Ventures and Mark Yusko from Morgan Creek Capital. Previously known as Red Planet, Metaplanet has transitioned from a budget hotel operator to a Web3 software developer.
One of the main reasons for Metaplanet’s decision to incorporate Bitcoin into its treasury assets was to minimize exposure to the Japanese yen, which has been impacted by Japan’s low-interest-rate environment. The yen has lost its position as a major global currency over the years. In a shareholder update, Metaplanet expressed concern about the yen’s vulnerability and highlighted Bitcoin’s potential as a hedge against inflation, a tool for macroeconomic resilience, and a source of long-term capital appreciation. This strategy mirrors that of MicroStrategy, a software developer that has also accumulated Bitcoin as part of its corporate treasury holdings.
Jason Fang, the managing partner and co-founder of Sora Ventures, emphasized that their collaboration with Metaplanet allows Japanese investors to gain exposure to cryptocurrencies through a publicly traded company, eliminating the need to hold the assets directly. This alternative investment avenue also helps mitigate the high tax imposed on unrealized crypto gains in Japan, which has been a contentious issue. Corporate investors like MicroStrategy have already reaped significant rewards from their Bitcoin holdings, with MicroStrategy’s position currently valued at over $12.57 billion, reflecting a gain of almost 104% yield-to-date.
At the current market price of around $65,000, Bitcoin has experienced a slight decline of more than 3% over the past day. The leading cryptocurrency is currently trading at around $69,000, which is 5% away from its all-time high of $73,750 registered on March 14. The surge in Metaplanet’s stock price following the addition of Bitcoin to its balance sheet reflects the growing interest and acceptance of cryptocurrencies in the corporate world. Other major corporate investors have also started to see significant gains from their Bitcoin holdings, highlighting the potential for digital assets to serve as a valuable addition to corporate treasury assets. As the market continues to evolve, more companies may follow suit in diversifying their balance sheets with cryptocurrencies like Bitcoin.
