The Japanese version of "MicroStrategy" has seen its stock price surge 3.6 times after continuously increasing its BTC holdings. Metaplanet was once a well-known economy hotel brand

Author: Weilin, PANews

Japanese listed company Metaplanet has repeatedly announced large purchases of Bitcoin since April, actions that are often seen as emulating the American company MicroStrategy. As of May 23, Metaplanet holds a total of 141.07 Bitcoins, valued at approximately $9.6 million. In a recent exclusive interview, Metaplanet's CEO Simon Gelovich candidly stated that while becoming Japan's version of MicroStrategy is a challenging goal, he hopes to provide Japanese investors with opportunities to engage in Bitcoin investments through similar strategies.

Recently, after transitioning to Bitcoin investments, Metaplanet has quickly boosted market sentiment, driven by multiple rounds of positive news, leading to a strong increase in the company's stock price, which rose by as much as 360% within two months after a prolonged period of stagnation. This trend is similar to the rise in stock prices following MicroStrategy's investment in Bitcoin, attracting considerable attention from users.

Imitating MicroStrategy's BTC Investment, Originally a Budget Hotel Business

Metaplanet was formerly known as Red Planet Hotels, a budget hotel brand popular among young people, with operations in Thailand, Japan, the Philippines, and Indonesia. However, due to the impact of the pandemic, Red Planet Hotels experienced a sharp decline in operating income and staff reductions.

Subsequently, the company ventured into Web3 and metaverse businesses, including the WEN Tokyo project, Takumi-X project, and an NFT trading platform. Now, as the yen continues to depreciate against the dollar, it has further adjusted its corporate strategy.

Metaplanet's official website indicates that the company is undergoing a transformation. The website states: "Metaplanet Inc. (stock code 3350) is a company listed on the Tokyo Stock Exchange that has begun implementing a strategic transformation. The company's strategic focus has shifted to Bitcoin, with Metaplanet adopting Bitcoin (BTC) as its primary treasury reserve asset and using excess cash flow to further accumulate Bitcoin. This strategic shift is due to Bitcoin's unique attributes, such as its absolute scarcity and non-political monetary policy."

In the business section, Metaplanet has added "Bitcoin consulting" services: "Metaplanet provides specialized consulting services to help businesses adopt Bitcoin. The company offers strategic guidance aimed at maximizing potential within existing business frameworks while overseeing the entire corporate restructuring. From formulating strategies to facilitating integration, Metaplanet helps businesses position Bitcoin as a foundational pillar for future development. Additionally, Metaplanet actively develops strategic partnerships to promote the global adoption of Bitcoin. By collaborating with industry leaders, Metaplanet drives the continued monetization of Bitcoin on its path to becoming a primary reserve asset."

On June 25, Metaplanet announced on the X platform that it has established a wholly-owned subsidiary in the British Virgin Islands to strengthen the strategic management of BTC assets.

As the largest Bitcoin bull currently, MicroStrategy was originally an IT company focused on research but successfully transformed after announcing its Bitcoin purchases in August 2020, leading to a rapid increase in its stock price. Despite experiencing mixed reviews during the process of borrowing and accumulating Bitcoin, its stock price has now reached ten times its initial value. As of June 20, MicroStrategy holds 226,331 Bitcoins, with a total value close to $15 billion.

Metaplanet's CEO Simon Gelovich stated in a media interview: "While becoming Japan's version of MicroStrategy is a challenging goal, we hope to provide Japanese investors with opportunities to engage in Bitcoin investments through similar strategies. Regardless of short-term price fluctuations, we plan to continue purchasing Bitcoin… We hope that in the future, Bitcoin can occupy a significant portion of our balance sheet." He expressed that the company "will be committed to widely disseminating the positive effects of Bitcoin both domestically and internationally."

When asked if he considered purchasing digital assets other than Bitcoin, Gelovich responded: "We only focus on Bitcoin. Because we believe Bitcoin is the only truly decentralized digital asset. Although Bitcoin's Proof of Work consensus mechanism is often seen as a weakness by supporters of other crypto assets or securities, in fact, it is one of Bitcoin's greatest advantages. The direct connection to the physical world through energy input makes Bitcoin a rare digital asset."

Simon Gelovich stated that MicroStrategy's stock is trading at a 1.75 times premium based on its Bitcoin holdings. "We believe that if Metaplanet also maximizes its per-share Bitcoin holdings, it can enjoy a similar premium. Additionally, we plan to conduct business within the Bitcoin ecosystem to seek additional revenue opportunities."

Regarding whether there are plans to "hedge" against Bitcoin price fluctuations, Gelovich said they would consider various methods, but fundamentally plan to invest in and hold Bitcoin long-term. "We maintain an unwavering attitude towards price fluctuations. We do not merely view volatility as a traditional 'risk'; rather, we see it as an opportunity."

Frequent Bitcoin purchases, stock price surges by 360% in two months.

Since April, Metaplanet has been very active in purchasing Bitcoin. On April 9, Metaplanet announced collaborations with Sora Ventures and Mark Yusko of Morgan Creek Capital to add $6.56 million worth of Bitcoin (BTC) to its balance sheet. Two weeks later, the company purchased an additional 19.87 Bitcoins. On May 13, Metaplanet further announced that it would use Bitcoin as a strategic reserve asset to hedge against Japan's growing debt burden and the volatility of the yen.

On May 23, the company's stock price rose by 158% within the previous week. Due to the significant increase in stock price, the Tokyo Stock Exchange suspended trading of its shares for two consecutive days. On June 11, Metaplanet announced it had further increased its holdings by 23.35 Bitcoins, bringing its total to 141.07 Bitcoins, valued at approximately $9.6 million.

The day before yesterday (June 24), Metaplanet announced that its board of directors had approved the use of 1 billion yen (approximately $7 million) to purchase Bitcoin, with the funds coming from the proceeds of the company's second issuance of ordinary bonds (secured). According to the company's announcement, these bonds have an annual interest rate of 0.5%, expected to be paid on June 26, 2024, and mature on June 25, 2025.

Driven by the news, Metaplanet's stock price surged by 360% within two months since its transition to Bitcoin investment after a long period of dormancy. As of June 25, the company's stock price rose from 20 yen on April 1 to 92 yen. The highest stock price was recorded on June 13, reaching 112 yen. On June 25, Metaplanet's market capitalization reached 16.15 billion yen (approximately $101 million).

This stock price trend of Metaplanet is very similar to the rise in stock prices following MicroStrategy's investment in Bitcoin. MicroStrategy's chairman and co-founder Michael Saylor began purchasing Bitcoin in 2020, and his company's stock has also experienced significant growth.

Currently, Metaplanet's vision and ambition extend beyond investing in Bitcoin; they also aim to leverage opportunities within the Bitcoin ecosystem for diversified development. When asked about the possibility of Japan launching a Bitcoin ETF, Gelovich stated: "Currently, there is no Bitcoin ETF in Japan, which means Japanese investors cannot conveniently invest in Bitcoin through securities accounts. Therefore, Metaplanet is committed to filling this gap."

He added, "Unlike an ETF, as an operating company, Metaplanet can access the capital markets and raise funds on terms favorable to shareholders. As the first Japanese listed company to strongly support Bitcoin, we have the ability to promote Bitcoin as a widely accepted monetary asset globally through business expansion and information dissemination."

Overall, Metaplanet's strategic adjustment can be seen as a bold and innovative attempt, but it may also face challenges in the future. As time goes on, the market will witness how Metaplanet continues to create value on its Bitcoin journey; its exploratory journey has just begun.