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Metaplanet, a little-known investment firm trading on the Tokyo Stock Exchange, has announced plans to adopt Bitcoin (BTC) as its “core treasury reserve asset”—a move that nearly doubled its stock price.
In a Monday tweet, the company confirmed that it had already deployed 1 billion JPY (or $6.56 million) toward the asset, representing nearly half of its total market capitalization at the time.
“This strategic pivot is not just about embracing digital assets but also about pioneering a future where finance meets innovation at its core,” the company wrote.
Following the announcement, Metaplanet’s stock jumped by 90% from 19 JPY at Monday’s close to 36 JPY at Tuesday’s close. It traded 69 million shares on the day—a quantum leap higher than its 928,000 share average, according to Google Finance data.
It's a familiar pattern for firms that onboard Bitcoin, most strikingly illustrated by business intelligence company MicroStrategy (MSTR). Since adopting Bitcoin as its primary asset in August 2020, the firm’s stock has risen almost 1,000% from $146 to over $1,400 today.
Metaplanet’s adoption of Bitcoin has prompted a flurry of comparisons to MicroStrategy. In fact, its CEO, Simon Gerovich, has retweeted several posts to his Twitter account, likening Metaplanet to “Asia’s first MicroStrategy.”
Which is more appealing?
— Jason Fang ᛤ (@JasonSoraVC) March 28, 2024
“The product will enable Japanese to gain exposure to Bitcoin without paying an unrealized gains tax that could go as high as 55%,” tweeted Sora Ventures founder Jason Fang. “It will also enable anyone with an account to the Tokyo Stock Exchange to gain exposure to Bitcoin without any regulatory risks,”
Fang’s company is backing Metaplanet’s foray into Bitcoin, along with UTXO Management, former OKX CSO Jack Liu, and Morgan Creek Capital CEO Mark Yusko.
Japan doesn’t have a standardized Bitcoin ETF right now, though it recently allowed investment funds to start holding digital assets after U.S. regulators approved Bitcoin spot ETFs in January.
Even in the U.S. MicroStrategy stock has found a role for investors as a “Bitcoin ETF with perks,” including low fees and modest use of leverage to acquire more BTC. It's currently up 102% year to date, versus Bitcoin’s 57% rise.
According to its website, Metaplanet’s business ranges from investing to real estate to Web3 consultation. It’s yet to offer any word about buying other digital assets more commonly associated with Web3, such as Ethereum (ETH).
Metaplanet did not respond to Decrypt’s request for comment.
Edited by Ryan Ozawa.