From Japanese Hotels to "Asia MicroStrategy": Metaplanet CEO Shares the Strategy Behind Soaring Stock Gains
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From Japanese Hotels to "Asia MicroStrategy": Metaplanet CEO Shares the Strategy Behind Soaring Stock Gains
"You must tell all your friends, family, and everyone you care about that now is the time to buy Bitcoin."
Navigating Web3 tides with focused insightsCompiled & Translated: TechFlow
Guest: Simon Gerovich, CEO of Metaplanet
Hosts: Bonnie & David Lin
Podcast Source: Bonnie Blockchain
Original Title: The Company with the "Strongest Stock in the World" Is in Japan! An Extremely Simple Model! No Product at All! Metaplanet CEO Simon Gerovich [Bonnie Blockchain]
Key Highlights
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You must tell all your friends, family, and loved ones: now is the time to buy Bitcoin.
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Bitcoin is an unmatched high-quality monetary asset—there’s no other asset on the market that can compare.
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Bitcoin is a superior version of gold—it can be called “digital gold.” Due to its scarcity and decentralization, Bitcoin should be a key consideration for every CFO in financial planning. Asset allocation shouldn’t consist solely of cash.
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Bitcoin treasury companies provide an indirect investment path for investors who find it difficult to access Bitcoin directly. This innovation by Bitcoin treasury firms is a disruptive change. This trend is like a capital black hole, drawing massive funds toward Bitcoin through these companies.
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If you want to invest in a Bitcoin treasury company, you must ensure the company is fully committed—not only refusing to sell Bitcoin, but doing everything possible to continuously increase its Bitcoin reserves.
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If you ask me whether we will ever sell our Bitcoin, my answer is absolutely not.
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Companies with strong execution, focus, and discipline will gain greater market recognition, while those lacking these traits will be eliminated.
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Bitcoin is a unique asset with limited supply and rising demand. As more people pay attention to Bitcoin, its price may continue to rise over time.
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We are still in the first phase of the Bitcoin journey—a phase we can call the “gold rush.” In this stage, our goal is to accumulate as much Bitcoin as possible. In the second phase, when Bitcoin’s price rises significantly, stock prices will truly reflect the underlying value of many listed companies.
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Under current conditions, Bitcoin is not an ideal form of currency. But it doesn’t need to be—it’s an excellent store of value.
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A key advantage of Bitcoin reserve companies is that they don’t need to innovate in their core business—their main job is buying Bitcoin. The real innovation lies in how they raise capital.
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I believe there will be multiple “Bitcoin superpowers” emerging in the future. While the U.S. may currently be the largest, we hope to help Japan become one through Metaplanet.
Bitcoin Asset Companies and Premiums
David:
Today we’re joined by Simon Gerovich, President of Metaplanet, to discuss the future of Bitcoin asset holdings and Bitcoin’s potential applications in the hospitality industry.
Bonnie:
The latest news is that Metaplanet's Bitcoin premium has reached nearly $600 per coin—some articles claim this is too high. What’s your view? Is the MNAV metric a good way to evaluate Bitcoin asset companies?
Simon:
Recently, many KPIs have been proposed to assess Bitcoin asset companies. Among them, I believe “Bitcoin yield” is the most important—it reflects the amount of Bitcoin held per share and its growth rate. This metric has become standard among sell-side analysts, and is now widely adopted by Bitcoin asset firms globally. Therefore, evaluating a company requires looking beyond a single metric and considering multiple factors.
MNAV (Market Net Asset Value) is an important reference point. It’s calculated by taking the company’s market cap plus enterprise value from debt, then dividing by the number of Bitcoins held. This ratio fluctuates based on market interest in the stock and the company’s activities. I believe Metaplanet’s premium is justified. For example, individual investors in Japan face significant tax hurdles when buying Bitcoin directly—up to 55% personal income tax. By investing in a public company like Metaplanet, investors can gain indirect exposure to Bitcoin in a much more tax-efficient way.
This creates a flywheel effect. The legitimacy of MNAV depends on several factors, most importantly a company’s ability to grow its “Bitcoin per share.” We are currently one of the fastest-growing companies globally in this regard, especially in increasing Bitcoin per share. Our target is to maintain MNAV between 3 and 5—this avoids diluting the stock excessively while effectively boosting the value of Bitcoin per share, creating greater value for all shareholders.
The Dilemma
Bonnie:
Based on what you just said, I see a dilemma. Some companies today have strong cash flow and healthy operations, while others are struggling. Those in distress might choose to pivot into becoming a Bitcoin treasury company—since the risk is low and the upside potentially huge. If these struggling companies see their stock surge—even surpassing well-run companies—how do you think this will play out?
Simon:
It’s interesting because Bitcoin treasury companies offer a way for investors who can’t easily access Bitcoin directly to invest indirectly. Almost everyone has a brokerage account—buying stocks is familiar. But setting up a crypto exchange account involves extra steps. And given past hacks on crypto exchanges, many remain wary of Bitcoin and cryptocurrencies. Additionally, some traditional investment funds are prohibited from buying Bitcoin directly, but they can invest in public equities. So I believe this innovation by Bitcoin treasury companies is truly disruptive. This trend acts like a capital black hole, pulling vast amounts of money toward Bitcoin through these firms.
Of course, caution is needed when choosing a Bitcoin treasury company. A firm’s track record will become increasingly important. For instance, we have 14 months of consistent performance, while MicroStrategy has five years. Also critical is the CEO’s mindset—are they truly believers in Bitcoin? Will they sell their holdings?
I recall a conference in Tokyo a few weeks ago focused on Japanese equities. Someone asked me what else I’d invest in besides Bitcoin. I made a look of utter disgust—and many took photos and shared them on social media. But let me emphasize: Metaplanet invests only in Bitcoin, nothing else, and we will never sell our Bitcoin. Michael Saylor consistently delivers the same message. So I believe if you're going to invest in a Bitcoin treasury company, you must ensure it is fully committed—not just to holding, but to aggressively growing its Bitcoin reserves.
Metaplanet’s Shift in Capital Structure
David:
Simon, can you walk us through the initial stages of your transformation? You mentioned the company was originally a struggling hotel business—that sounds fascinating. How did you initially raise funds to buy Bitcoin, and how has your funding strategy evolved over the years?
Simon:
We owned a portfolio of hotels. During our early meetings about transitioning into a Bitcoin asset company, we decided to raise initial capital by selling off some of these hotels. We also received funding from like-minded investors—some of whom are actually here at this event today. For example, UTXO Management, sponsor of this Bitcoin conference, became one of our early shareholders. We also had an excellent board, many members of which participated in our private placements.
In early last year, we used the raised capital to make our first Bitcoin purchase, followed by a rights offering. A rights offering allows existing shareholders to buy new shares. Traditionally, rights offerings are seen negatively—often interpreted as a sign of financial distress.
But in hindsight, it was one of our smartest moves. We have about 13,000 to 14,000 shareholders who filled out forms and provided capital specifically for Bitcoin purchases. This created an early connection between our Japanese shareholders and the company—because their money went directly into buying Bitcoin. When you buy stock on the open market, you’re buying from another seller. But when you subscribe to new shares, your money flows straight to the company—you feel your contribution is helping buy Bitcoin. That was our approach.
This happened last summer—we raised roughly $60–70 million. By year-end, we launched our first “moving exercise warrant.” This is similar to the U.S. model of “at-market equity offerings.” In the U.S., companies can directly issue new shares to the market, as MicroStrategy does. But in Japan, that’s not feasible. So we designed the moving exercise warrant structure: we issued warrants to partners, who then sold shares in the market and used the proceeds to exercise the warrants, receiving newly issued shares. The end result mirrors the U.S. “at-market” model.
Through this method, we successfully raised substantial capital. We completed our first issuance in December, and the most recent one launched in February and was finalized just last week. We officially announced raising approximately $600 million in equity through this mechanism. As the company scales, we can issue more shares to buy more Bitcoin. We plan to continue using similar “at-market” style operations.
Looking ahead, we may issue convertible bonds or preferred shares, but we’re currently focused on equity financing. This is the most effective method—permanent capital that doesn’t need to be repaid, and can be fully allocated to Bitcoin purchases.
A Wave of Copycat Bitcoin Companies?
Bonnie:
Back to your earlier point. Clearly, Michael Saylor and your team are staunch Bitcoin supporters, and Bitcoin treasury companies (those adding Bitcoin to their balance sheets) have gained strong support from the Bitcoin community. Now, many seeing your success want to copy the model. But you were one of the top-performing stocks globally last year, right? Your model feels like a “secret formula.” Yet many entering this space have the wrong mindset, yet still call themselves Bitcoin companies. What’s your take?
Simon:
Overall, more companies adopting the Bitcoin standard is a positive development. I believe this applies not only to companies like ours that were previously struggling, but also to successful firms sitting on large piles of idle cash.
Of course, there will always be bad actors treating this as a get-rich-quick scheme. They might think, “If Bitcoin can boost my stock price, why not?” But I trust investors are rational. As more Bitcoin treasury companies emerge, investors will be able to compare them more easily—using platforms to monitor metrics like BTC yield (Bitcoin return on investment) and Bitcoin per share. Ultimately, companies with strong execution, focus, and discipline will earn greater market recognition, while weaker ones will be phased out.
Recently, I saw a company announce it was selling Bitcoin—just months after announcing purchases. I thought, that’s foolish. Selling Bitcoin just to book profits in the final quarter severely damages credibility. Investors won’t see them as a reliable Bitcoin investment vehicle anymore. Over time, performance differences will widen, and investors will know exactly which companies they support and why.
Still, I understand motivations for adding Bitcoin to balance sheets vary. There are many complex factors at play.
We Will Keep Buying Bitcoin Forever
David:
Is there a price at which you’d stop buying Bitcoin—or at least slow down? If Bitcoin jumps to $500,000 next week, would you still keep buying? Even if it quintuples in a single week?
Simon:
I love that hypothetical. If Bitcoin hit $1 trillion tomorrow, we might consider it overvalued and reassess. But our plan is to keep buying Bitcoin indefinitely. Right now, Bitcoin is approaching new all-time highs again. Bitcoin is a unique asset—its supply is fixed, while demand keeps rising. As more people take notice, its price may continue climbing over time.
If you ask whether we’ll ever sell Bitcoin, the answer is absolutely not. We want shareholders to freely decide when to buy or sell our stock. Our goal is to be the best leveraged proxy for Bitcoin. Our top priority is staying focused and disciplined, sticking strictly to the plan. Regardless of market fluctuations, we won’t change course or make decisions that confuse investors.
Two Phases of Growth for Bitcoin Asset Companies
Bonnie:
Michael mentioned that MSTR’s leverage is equivalent to 1.5x Bitcoin. Many investors assume that when Bitcoin hits a new high, MSTR or other Bitcoin treasury stocks should too. Why isn’t that happening in reality?
Simon:
I think long-term perspective is crucial. Strategically, a company may not look much different today than it did four or five months ago. But the biggest change is that its Bitcoin per share has increased significantly. Even if the stock price hasn’t fully reflected this, the company’s intrinsic value has clearly risen.
Bonnie:
Exactly—but I think many people don’t truly understand Bitcoin. How should they think about it? If you had to explain it to my 70- or 80-year-old grandmother, what would you say?
Simon:
If your grandmother is in her 70s or 80s, I might not recommend she hold Bitcoin herself—but she could consider it a long-term investment for her descendants. We are still in the first phase of the Bitcoin journey—a “gold rush” phase. Our goal in this phase is to accumulate as much Bitcoin as possible. The total Bitcoin network is capped at 21 million, and we now hold more Bitcoin than any other public company—almost no one can catch up. We aim to be the leader in this space. In the second phase, when Bitcoin’s price surges, stock prices will finally reflect the true value of these public companies. Supply-demand dynamics, Bitcoin price volatility, stock volatility, and execution capability in fundraising will all play major roles in this process.
In this first phase, people need to understand that stock prices don’t always reflect intrinsic value. Like Amazon in its early days—revenue grew, but thin margins meant weak stock performance. Back then, Amazon reinvested earnings into advertising, marketing, and infrastructure. So I believe investors in Bitcoin treasury companies should not expect short-term gains. Similarly, if you invest in Bitcoin, don’t seek quick profits. But over the medium to long term, Bitcoin treasury companies can deliver higher returns by increasing Bitcoin per share. By investing in such a company, you delegate the heavy lifting—Bitcoin accumulation and management—to professionals. Years later, you’ll look back and realize your Bitcoin exposure has grown substantially.
The Explosive Growth Phase of Bitcoin Asset Companies
Bonnie:
You mentioned we’re in the first phase, correct? It’s like the Wild West gold rush—we’re waiting for the second phase. When do you think that second phase will begin?
Simon:
The second phase may arrive in three to five years, perhaps even five to seven. By then, Bitcoin will be widely adopted globally, possibly surpassing $1 million—or even $5 million. Banks will have the infrastructure to custody Bitcoin. If you own treasury assets, stock portfolios, or real estate, you’ll be able to deposit them at banks and secure loans against them. Currently, this functionality doesn’t exist in the Bitcoin ecosystem. Although some banks have announced plans for Bitcoin custody, offering competitive interest rates will take time.
In the second phase, Bitcoin will become a core component of high-quality balance sheets. I hope by then our balance sheet holds hundreds of billions—or even trillions—of dollars worth of Bitcoin. These assets could be deposited with major banks to secure low-interest loans, which we’d use to acquire businesses within the Bitcoin ecosystem—like applying for a digital banking license or acquiring regional banks to offer Bitcoin-related financial services. The second phase will unlock endless possibilities, as owning Bitcoin as a premium asset opens entirely new strategic pathways.
Game Theory Between Nations
Bonnie:
The other day, I spoke with a leader from an Asian exchange who suggested that since almost all trading is priced in USD stablecoins, the U.S. already has a dominant advantage in Bitcoin. Does that mean other countries are too far behind to catch up?
Simon:
I believe Bitcoin adoption takes time. The U.S. strategy in Bitcoin may be more deliberate than we realize. I suspect the U.S. is quietly accumulating Bitcoin behind the scenes—just not announcing it. Publicly disclosing every purchase would drive up the price, making further accumulation harder. Meanwhile, some countries are openly declaring their Bitcoin holdings. El Salvador and Bhutan are prime examples of transparent Bitcoin buyers. I also know Middle Eastern nations are announcing their Bitcoin positions in various ways. So I believe multiple “Bitcoin superpowers” will emerge. While the U.S. may currently be the largest, I’m confident other nations can still achieve major standing in this field.
We hope Metaplanet can help Japan become one of them. Today, Metaplanet is Japan’s—and Asia’s—largest Bitcoin holder. We aim to encourage Japan to follow in the U.S.’s footsteps. So even if Bitcoin adoption seems slow now, don’t lose hope. This process takes time, and that means we still have opportunities to buy Bitcoin before prices rise so high that ordinary people can no longer afford it.
You must tell all your friends, family, and loved ones: now is the time to buy Bitcoin.
Japan’s Unique Demand for Bitcoin
Bonnie:
I remember you mentioned in an interview that if Japanese investors want Bitcoin exposure, they basically have to go through your company—is that accurate?
Simon:
There are actually several options. Investors can buy Bitcoin directly via local exchanges, but that comes with high tax burdens. So when investors want a more tax-efficient way to gain Bitcoin exposure—and returns beyond Bitcoin itself—they often choose us. Direct Bitcoin ownership returns depend entirely on price movements. Investing via U.S. Bitcoin ETFs usually yields returns closely tracking Bitcoin’s price. In contrast, Bitcoin treasury companies have an edge: we’re operating businesses that can leverage multiple capital market tools—issuing stock, convertible bonds, preferred shares—to boost Bitcoin per share more effectively.
Bonnie:
You mentioned three metrics—Bitcoin per share, BTC yield, and BTC gain. What’s the difference between them?
Simon:
“BTC yield” refers to the percentage growth in Bitcoin per share over time. This year, our BTC yield is about 190%, meaning we’ve increased Bitcoin per share by 190%.
“BTC gain” converts BTC yield into actual Bitcoin quantity. It’s calculated by multiplying the prior period’s Bitcoin holdings by the BTC yield. For us, this year’s operational Bitcoin gain is approximately 3,500 BTC (accounting for dilution). Multiply that by the current Bitcoin price, and you get “BTC dollar gain.”
This metric helps traditional finance understand the real value we create. This year, our BTC dollar gain is around $400 million. I view this as a form of profit—though not accounting profit, it reflects genuine value creation. On an annualized basis, our BTC dollar gain could reach $1 billion. So, what should the valuation be for a company creating $1 billion in value annually for shareholders?
The challenge now is that traditional finance lacks adequate evaluation tools. They rely on conventional frameworks like revenue and profit. But Bitcoin treasury companies differ from traditional operating firms. We don’t have meaningful revenue or conventional profits. That’s why alternative metrics—BTC yield, BTC gain, BTC dollar gain—are essential for analysts to grasp the value we generate.
Becoming a Bitcoin Company: Metaplanet
David:
Before diving into your philosophy on Bitcoin, I’d like to hear your thoughts on Metaplanet. Your company is often compared to MicroStrategy—some even call you the “Asian MicroStrategy.” What’s your take on that?
Simon:
I feel deeply honored by the comparison. Michael Saylor has profoundly influenced me. I often say that during the pandemic, when my hotel business was collapsing, listening to Michael Saylor’s podcasts brought me comfort. He shared his vision of how public companies could transform and embrace Bitcoin—a concept that seemed unimaginable at the time.
That inspired me to pivot from a failing hotel business. Over the past year, making Bitcoin our core treasury asset has completely transformed our trajectory.
David:
When pushing for this transition, did investors push back? Especially since Bitcoin is a new asset class unrelated to core operations—how did you handle opposition?
Simon:
In a way, it was a blessing in disguise. Because our business was in such poor shape, we had almost no other options. The board and shareholders told me: “Simon, figure something out—try anything that can save the company.” So I faced little resistance in board meetings.
But I recall a few years ago, when the business was healthy, I proposed accepting Bitcoin payments at our hotels. It seemed like a natural next step, but the board laughed at me.
They asked why I’d risk our business on something as unpopular as Bitcoin. I had to drop the idea. But I kept wondering if there’d ever be a chance to integrate Bitcoin into our core operations. Eventually, we achieved it at the right moment.
Local Currency and Bitcoin
David:
How much has domestic currency performance influenced your new Bitcoin acquisition strategy? For example, over the past 15 to 20 years, the yen has steadily depreciated against the dollar and other baskets. Without this depreciation, would you still have made the shift?
Simon:
Absolutely. I believe Bitcoin is an unmatched high-quality monetary asset—no other asset compares. If you’re in a market with currency depreciation, like the U.S., you hear constant talk about excessive money printing and unsustainable national debt.
Japan is similar. Many G7 nations face the same issues. Japan has the highest debt-to-GDP ratio globally—a stark reality. The yen’s purchasing power has sharply declined. Once, many Japanese proudly vacationed in Hawaii—now it’s unaffordable due to yen depreciation. But I believe this isn’t just a yen or dollar problem—it’s a flaw in the entire fiat system. Governments can print these currencies at will, meaning your hard-earned wealth can be diluted overnight. Thus, fiat currency is not an ideal long-term store of value.
Bitcoin and Deflation?
David:
We know Bitcoin is considered inflation-resistant. But what about deflation? Japan experienced deflation in the 1990s and beyond. If cash gains purchasing power over time, what theoretical value or demand remains for an asset like Bitcoin?
Simon:
That’s a profound question. But I believe prices are already rebounding. Japan experienced a massive asset bubble, driven by post-war reconstruction. I remember living in Japan in the 1980s—people wrote books calling Japan “Number One.” I hope Japan can reach such heights again. But yes, it fell from an extreme peak, and now inflation is returning.
In a deflationary environment where money gains value over time, the case for buying Bitcoin may seem less obvious. But Bitcoin has a key feature: its supply is fixed at 21 million. Even an appreciating currency can’t match that. Bitcoin’s value doesn’t depend on any single monetary system—it exists independently. Compared to global currency printing and inflation, Bitcoin remains the best store of value today.
Why Don’t People Just Buy Bitcoin Directly?
Bonnie:
You hold so much Bitcoin—how do you ensure the security of these assets?
Simon:
A major advantage of Bitcoin treasury companies is helping users overcome technical barriers to holding Bitcoin. As we discussed, losing a private key means permanent loss—unlike a bank password, it can’t be reset by a phone call. Lost Bitcoin is gone forever. So if you invest in a Bitcoin treasury company or a Bitcoin ETF, you can sleep soundly knowing your assets are professionally safeguarded.
In fact, many Bitcoin holders haven’t shared their keys with spouses or children. If something happens, those coins could vanish forever.
As a company, we prioritize transparency. We publish all our Bitcoin public addresses on our dashboard. This builds trust with investors and Japanese shareholders. Additionally, regulations require us to custody Bitcoin with third-party custodians approved by regulators—we strictly comply. As our holdings grow, we onboard more professional custodians to enhance security. We always select top-tier providers and distribute assets across multiple institutions to minimize risk.
Do Bitcoin Asset Companies Never Sell?
Bonnie:
If a company claims to be a Bitcoin reserve company but actively trades—buying low and selling high—and they’re very good at it, what impact does that have on the system? We strongly support Michael Saylor’s long-term holding strategy. But if I choose to sell my Bitcoin, what consequences follow beyond disappointing investors?
Simon:
Then you’re not a true Bitcoin reserve company. A firm trading Bitcoin is more like a Bitcoin hedge fund. Bitcoin hedge funds aim to profit from Bitcoin markets using various trading strategies—and there are indeed tools available for that.
I know of instruments focused on Bitcoin-related trading strategies for returns. But that’s fundamentally different from the mission of a Bitcoin reserve company. We must increase Bitcoin per share over time—which requires accumulating, not selling, Bitcoin.
Would You Pay with Bitcoin?
David:
Why don’t your hotels accept Bitcoin for room fees now? Will that change in the future?
Simon:
That reminds me of the Bitcoin pizza story. Early on, someone bought two pizzas for 10,000 BTC—later, when Bitcoin hit millions per coin, that became the most expensive pizza in history. If you paid for a night’s stay in Bitcoin and it later surged to $1 million, that would be an incredibly expensive room.
David:
That’s hindsight—but you can’t predict Bitcoin’s price tomorrow. Is that why Bitcoin isn’t widely used for payments? Because everyone believes its value will keep rising?
Bonnie:
Exactly. People tend to spend weaker currencies instead.
David:
Do you think one day, not just Bitcoin but stablecoins will be widely used for hotel payments—or other blockchain-based transactions?
Simon:
At its core, blockchain is just a ledger, and there are many types of ledgers. In Japan, people are already comfortable with e-money. You can tap your phone to pay at hotels. In the U.S., Apple Pay is widespread. For consumers, transaction speed matters most. Early Bitcoin coffee purchases required 15 minutes for confirmation. Under current conditions, Bitcoin is not an ideal currency. But it doesn’t need to be—it’s an excellent store of value. Future Bitcoin-based apps may enable microtransactions.
Still, for a hotel or any business, accepting Bitcoin is a smart move. It gradually increases your Bitcoin holdings as an asset reserve. But realistically, most companies need revenue for daily expenses. If you’re a hotel with razor-thin margins, you may not be able to hold onto Bitcoin revenue and will have to sell it to cover costs. Still, I believe more companies will adopt Bitcoin payments. In the Middle East, many already use Bitcoin to buy cars and apartments. Sellers accept it because they see Bitcoin as a long-term appreciating asset.
The Metaplanet Story
Bonnie:
Michael Saylor shared how he started investing in Bitcoin—during the pandemic, competing with giants like Microsoft. What’s your story?
Simon:
To be honest, my story isn’t that dramatic. We were under immense pressure. Our hotels were forced to close—three out of four markets in Southeast Asia and Japan shut down. Revenue dropped to zero, but expenses continued. We faced a survival crisis. Our auditor added a “going concern” warning to our financial report—meaning we didn’t have enough cash to operate for the next 12 months. It was an extremely tough period.
Inspired by Michael Saylor, I shared his ideas at a board meeting—and the response was overwhelmingly positive. We decided to hold a shareholder meeting to propose making Bitcoin our core treasury asset. When we announced the plan, the market reacted positively, reinforcing our confidence. Now, 13 to 14 months into our Bitcoin strategy, I’m excited about the future and ready to meet higher expectations and challenges.
Bonnie:
How did this evolve? Had you already started buying Bitcoin before this? Or did you learn about it through YouTube? First, you had to believe in Bitcoin and this strategy—so where did your belief come from?
Simon:
I actually started buying Bitcoin around late 2012 to early 2013. I was living in Japan and used Mt. Gox—the platform many early Bitcoin adopters first encountered. I’ve been a long-time Bitcoin enthusiast. This passion helped me during tough times in the hotel business. Whenever I felt discouraged, thinking about Bitcoin lifted my spirits. For years, I looked for ways to merge my passion with business. The pandemic crisis gave me that opportunity.
Bitcoin as a Moral Responsibility
David:
I recall you once said Bitcoin is a moral responsibility. What did you mean by that?
Simon:
I may have said it’s a moral obligation. I believe people like me and others in the industry have a duty to help more people understand Bitcoin. In Japan, accessing Bitcoin isn’t easy. Private transactions aren’t common, visibility is low, and account setup is complex. After the Mt. Gox incident, Japan tightened digital asset regulations—necessary, but it preserved many traditional rules that raise entry barriers. So we want to offer Japanese investors a simpler, tax-efficient way to gain Bitcoin exposure.
Additionally, we secured the publishing license for Bitcoin Magazine in Japan. We released our first issue in March, with the next one coming at the end of June. We hope this magazine helps Japanese readers better understand Bitcoin. We feel responsible for educating people and improving financial literacy. Bitcoin Magazine isn’t meant to profit—it’s a platform to share Bitcoin stories.
We also kept one hotel and renamed it the “Bitcoin Hotel”—a place for real-world Bitcoin interaction. People can experience the service, visit a Bitcoin art museum—we plan to collaborate with global Bitcoin artists to showcase their work. We’ll also have a Bitcoin museum covering its history and evolution. The lobby might even feature a wax figure of Satoshi Nakamoto for photo ops. Of course, we’d be delighted if you could visit when the hotel opens by the end of next year.
Metaplanet’s Future Strategy
David:
Talking about hotels—beyond lodging—what are Metaplanet’s future plans? You’ve successfully turned the company around with a sharp strategy. Are there new strategic developments? Expansion plans? You’re down to one hotel—will you consider acquiring more?
Simon:
No. We kept this hotel because it’s a legacy asset from the old era. There are multiple reasons, but the most important is that the hotel’s operational losses can be used for tax deductions. As long as we retain the hotel, we can offset future profits from other businesses with its tax losses. So keeping it has significant value. But aside from this one hotel, we’ve fully transformed into a company 100% focused on Bitcoin.
A key strength of Bitcoin reserve companies is that they don’t need to innovate in their core business—their main job is buying Bitcoin. The innovation lies in how they raise capital. Currently, our primary fundraising tool is the moving exercise warrant, similar to at-market equity issuance.
Should Every Company Hold Bitcoin on Its Balance Sheet?
David:
So what about companies with hybrid strategies? For example, Elon Musk bought significant Bitcoin for Tesla, but Tesla isn’t a dedicated Bitcoin treasury company. Tesla included Bitcoin in its finances for reasons possibly different from Metaplanet. For companies whose core business isn’t Bitcoin-centric, do you think they should include Bitcoin as a cash alternative in their asset allocation?
Simon:
Absolutely. As we discussed earlier, Bitcoin makes strong sense as an asset. Idle cash loses value—that’s undesirable. I know of Asian companies already holding gold and Bitcoin on their balance sheets. I believe Bitcoin is a superior version of gold—it can be called “digital gold.” Given its scarcity and decentralization, it should be a key option for every CFO in financial planning. Asset allocation shouldn’t consist solely of cash.
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