Japanese "MicroStrategy" sees stock surge 3.6x after continuous BTC accumulation; Metaplanet was formerly a well-known budget hotel brand
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Japanese "MicroStrategy" sees stock surge 3.6x after continuous BTC accumulation; Metaplanet was formerly a well-known budget hotel brand
After Metaplanet transitioned to investing in Bitcoin, it quickly boosted market sentiment, driving its stock price to surge by as much as 360% within two months following a prolonged period of stagnation. This trend resembles the stock price rally seen in MicroStrategy after its Bitcoin investment.
Navigating Web3 tides with focused insightsBy Weilin, PANews
Since April, Japanese-listed company Metaplanet has repeatedly announced large-scale purchases of Bitcoin, drawing comparisons to U.S. firm MicroStrategy. As of May 23, Metaplanet held 141.07 BTC, valued at approximately $9.6 million. In a recent exclusive interview, Metaplanet CEO Simon Gelovich openly stated that while becoming Japan’s version of MicroStrategy is an ambitious goal, the company hopes to provide Japanese investors with access to Bitcoin investment through a similar strategy.
Recently, after shifting toward Bitcoin investment, Metaplanet quickly sparked market enthusiasm. Fueled by a series of positive developments, the company’s stock price surged 360% within two months following a prolonged period of stagnation. This trajectory mirrors MicroStrategy’s post-Bitcoin-investment rally and has drawn significant attention from investors.
Following MicroStrategy’s Path in BTC Investment—Once an Economy Hotel Operator
Metaplanet was formerly known as Red Planet Hotels, a budget hotel brand popular among young travelers, with operations across Thailand, Japan, the Philippines, and Indonesia. However, the pandemic severely impacted its business, leading to sharp revenue declines and workforce reductions.
Subsequently, the company pivoted into Web3 and metaverse ventures, launching initiatives such as WEN Tokyo, Takumi-X, and an NFT trading platform. Now, amid a persistently weakening yen against the U.S. dollar, it has further adjusted its corporate strategy.
According to Metaplanet’s official website, the company is undergoing a strategic transformation. It states: “Metaplanet Co., Ltd. (Stock Code: 3350), listed on the Tokyo Stock Exchange, has initiated a strategic shift. The company’s focus is now on Bitcoin, adopting BTC as its primary treasury reserve asset and allocating excess cash flow toward further Bitcoin accumulation. This strategic pivot stems from Bitcoin’s unique attributes, including absolute scarcity and non-political monetary policy.”
Under its business offerings, Metaplanet has added a “Bitcoin consulting” service: “Metaplanet provides specialized advisory services to help enterprises adopt Bitcoin. The company offers strategic guidance to maximize potential within existing corporate frameworks while overseeing enterprise restructuring. From strategy formulation to integration support, Metaplanet helps businesses establish Bitcoin as a foundational pillar for future growth. Additionally, Metaplanet actively builds strategic partnerships to promote global Bitcoin adoption. By collaborating with industry leaders, Metaplanet advances Bitcoin’s ongoing monetization journey toward becoming a dominant reserve asset.”
On June 25, Metaplanet announced on X that it had established a wholly-owned subsidiary in the British Virgin Islands to strengthen strategic management of its BTC assets.
MicroStrategy, currently the largest corporate holder of Bitcoin, was originally an IT research-focused company. After announcing its first Bitcoin purchase in August 2020, it successfully transformed its business model, triggering a rapid rise in its stock price. Despite mixed reactions over its repeated borrowing and Bitcoin accumulation strategy, the company’s share price has since increased tenfold. As of June 20, MicroStrategy holds 226,331 BTC, worth nearly $15 billion.
In a media interview, Metaplanet CEO Simon Gelovich said: “While becoming Japan’s version of MicroStrategy is a challenging goal, we aim to offer Japanese investors exposure to Bitcoin investment through a similar strategy. Regardless of short-term price fluctuations, we plan to continue buying Bitcoin… We hope Bitcoin will eventually constitute the majority of our balance sheet. We are committed to widely promoting Bitcoin’s positive impact both domestically and internationally.”
When asked whether the company would consider acquiring digital assets other than Bitcoin, Gelovich replied: “We focus solely on Bitcoin. We believe Bitcoin is the only truly decentralized digital asset. Although Bitcoin’s Proof-of-Work consensus mechanism is often criticized by supporters of other crypto assets or securities, it is in fact one of Bitcoin’s greatest strengths. Its direct link to the physical world through energy expenditure makes Bitcoin a rare digital asset.”
Simon Gelovich noted that MicroStrategy’s stock trades at a 1.75x premium relative to its Bitcoin holdings. “We believe that if Metaplanet also maximizes Bitcoin per share, it could enjoy a similar valuation premium. Furthermore, we plan to conduct business within the Bitcoin ecosystem to identify additional revenue opportunities,” he said.
Regarding hedging against Bitcoin price volatility, Gelovich said the company considers various approaches but fundamentally plans for long-term investment and holding. “We remain steadfast in the face of price swings. We don’t just view volatility as ‘risk’ in the traditional sense—we see it as opportunity.”
Frequent Bitcoin purchases drive 360% stock surge in two months.
Since April, Metaplanet has been aggressively acquiring Bitcoin. On April 9, the company announced a collaboration with Sora Ventures and Mark Yusko of Morgan Creek Capital to add $6.56 million worth of BTC to its balance sheet. Two weeks later, it purchased an additional 19.87 BTC. On May 13, Metaplanet further declared that it would treat Bitcoin as a strategic reserve asset to hedge against Japan’s rising debt burden and yen volatility.
On May 23, the company’s stock surged 158% within a week, prompting the Tokyo Stock Exchange to halt trading for two consecutive days due to the sharp rise. On June 11, Metaplanet announced another purchase of 23.35 BTC, bringing its total holdings to 141.07 BTC, valued at around $9.6 million.
Two days ago (June 24), Metaplanet announced that its board had approved using 1 billion JPY (approximately $7 million) to buy Bitcoin, funded by proceeds from the issuance of its second series of secured corporate bonds. According to the company announcement, these bonds carry a 0.5% annual interest rate, with payment expected on June 26, 2024, and maturity on June 25, 2025.
Driven by this news, Metaplanet’s stock—which had been dormant for a long time—surged 360% within two months of its strategic pivot. As of June 25, the share price rose from 20 JPY on April 1 to 92 JPY. The peak price reached 112 JPY on June 13. On June 25, Metaplanet’s market capitalization stood at 16.15 billion JPY (approximately $101 million).
This stock trend closely resembles MicroStrategy’s price trajectory after its Bitcoin investments. Since 2020, MicroStrategy Chairman and Co-Founder Michael Saylor has led the company’s Bitcoin acquisition strategy, which has driven substantial stock appreciation.
Looking ahead, Metaplanet’s vision extends beyond mere Bitcoin investment—it aims to explore diverse opportunities within the Bitcoin ecosystem. When asked about the prospects of a Bitcoin ETF launch in Japan, Gelovich responded: “Currently, there is no Bitcoin ETF in Japan, meaning local investors cannot easily access Bitcoin through their brokerage accounts. Metaplanet aims to fill this gap.”
He added: “Unlike an ETF, as an operating company, Metaplanet can access capital markets and raise funds under favorable terms for shareholders. As Japan’s first publicly traded company strongly backing Bitcoin, we have the ability to expand our business and disseminate information to advance Bitcoin’s acceptance as a globally recognized monetary asset.”
Overall, Metaplanet’s strategic shift represents a bold and innovative move—but it may also face challenges ahead. Over time, the market will observe how Metaplanet continues to create value on its Bitcoin journey. Its exploration has only just begun.
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