Metaplanet, an investment firm, has seen an extraordinary surge in its stock prices, soaring by an impressive 158% in the last week, making it the top gainer among Japanese stocks.
Currently valued at 93 Japanese yen per share, the company has witnessed a remarkable 127% surge in just two days.
Such rapid growth has prompted the Tokyo Stock Exchange to impose circuit breaker trading halts multiple times in the past week alone.
With a market capitalization approaching $1 billion (14.8 billion Japanese yen), Metaplanet is making substantial waves in the financial realm.
Metaplanet Follows the Footsteps of MicroStrategy
Metaplanet’s recent success can be credited to its adoption of a strategy reminiscent of MicroStrategy, the largest corporate holder of Bitcoin.
Since unveiling its Bitcoin investment strategy on April 8, Metaplanet has amassed 117.7 Bitcoin, now valued at $7.2 million. Consequently, its stock has skyrocketed by 389%.
In a statement released on May 13, Metaplanet disclosed its plans to strategically utilize various capital market instruments to strengthen its Bitcoin reserves, echoing MicroStrategy’s methodology.
The company highlighted the necessity to hedge against Japan’s growing debt burden and the swift depreciation of the Japanese yen.
Japan bears the unfortunate distinction of having the highest debt-to-GDP ratio among developed nations, currently standing at 261%.
Furthermore, 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 response to these economic challenges.
Although currently tradable exclusively on the Tokyo Stock Exchange, thus limiting access to U.S. investors, plans are underway to tokenize its shares on the Bitcoin layer-2 network Liquid.
Arnab Naskar, one of the founders of security token platform STOKR, has indicated an intention to tokenize Metaplanet shares, drawing inspiration from the method employed to tokenize MicroStrategy stock.
Last month, Metaplanet disclosed its decision to integrate Bitcoin into its treasury assets for various reasons.
Foremost among these is its aim to mitigate exposure to the Japanese yen, which has been significantly affected by Japan’s low-interest-rate environment.
In a shareholder update, Metaplanet conveyed apprehensions regarding the yen’s susceptibility and underscored Bitcoin’s potential as a hedge against inflation, a tool for macroeconomic resilience, and a source of long-term capital appreciation.
Corporate Bitcoin Holders Start to Reap Rewards
Several major corporate investors in Bitcoin, such as MicroStrategy, have witnessed a significant surge in their profits.
According to data compiled by Saylortracker, at the current market prices hovering around $65,000, MicroStrategy’s Bitcoin holdings boast a total valuation exceeding $12.57 billion.
This translates to the company holding substantial unrealized profits of nearly $6.5 billion on paper—a remarkable gain of almost 104% year-to-date from an investment initiative initiated under Michael Saylor’s leadership back in 2020.
Presently, Bitcoin is trading at approximately $69,000, marking a decrease of more than 3% over the past day.
The primary cryptocurrency is just 5% shy of its all-time high of $73,750 recorded on March 14.
