Investment firm Metaplanet has recently experienced an impressive surge in its shares, with a remarkable increase of 158% over the past week, making it the highest gainer among all Japanese stocks. The current share price of the company stands at 93 Japanese yen, marking a significant 127% jump in just two days. Such rapid growth led to multiple trading halts on the Tokyo Stock Exchange due to circuit breaker activations.
Reason Behind the Success
This success can be linked to Metaplanet’s adoption of a strategy akin to that of MicroStrategy, the largest holder of Bitcoin among corporations. Since unveiling its Bitcoin investment strategy on April 8, Metaplanet has amassed 117.7 Bitcoin, valued at $7.2 million presently. Consequently, its stock has surged by an impressive 389%, showcasing the effectiveness of its strategic moves.
Metaplanet cited the necessity to hedge against Japan’s growing debt burden and the rapid depreciation of the Japanese yen, factors that have significantly impacted the country’s economic stability.
- Japan currently holds the unfortunate distinction of having the worst debt-to-GDP ratio among developed countries at 261%. Furthermore, the Japanese yen has depreciated by over 34% against the US dollar since the start of 2021.
- Metaplanet views Bitcoin as a direct response to these economic pressures and an essential asset in its investment portfolio.
Future Plans and Expansion
While Metaplanet is currently limited to trading on the Tokyo Stock Exchange, plans are underway to tokenize its shares on the Liquid network of the Bitcoin layer-2 network to broaden accessibility, as stated by Arnab Naskar, one of the founders of security token platform STOKR.
Metaplanet aims to follow a similar tokenization path taken by MicroStrategy, expanding its investor base and potential reach.
Last month, Metaplanet incorporated Bitcoin into its treasury assets to counteract the impacts of Japan’s low-interest-rate environment and to hedge against inflation. The move reflects the company’s focus on long-term capital appreciation and macroeconomic resilience.
Data from Saylortracker indicates that major corporate investors in Bitcoin like Microstrategy have witnessed substantial profits, with MicroStrategy’s Bitcoin holdings now exceeding $12.57 billion.
As of the latest data, Bitcoin is currently priced at around $69,000, slightly down by more than 3% in the past day. Despite this minor dip, the cryptocurrency is merely 5% away from its all-time high of $73,750 set on March 14.
