Metaplanet, a well-established Japanese hotel and services provider, made headlines recently when it announced its purchase of an additional ¥250 million ($1.8 million) worth of Bitcoin. This move is in line with the company’s strategy to accumulate Bitcoin as an asset, following in the footsteps of MicroStrategy, a high-profile corporate player in the Bitcoin space. Metaplanet’s latest purchase brings its total Bitcoin holdings to approximately 141 coins, acquired at an average price of ¥10,278,391 ($65,000) per coin.
The decision to invest in Bitcoin as a treasury reserve asset was made by Metaplanet in April of 2024, when the company made its initial ¥1 billion purchase of the digital currency. Since then, Metaplanet has continued to increase its holdings through multiple purchases, with the most recent buy causing a 10% rise in the company’s stock price. This marks the third million-dollar Bitcoin acquisition by Metaplanet in just 7 weeks, leading to a nearly fivefold increase in the company’s share price since the adoption of its Bitcoin strategy.
Metaplanet’s move to accumulate Bitcoin is driven by a desire to hedge against Japan’s massive national debt burden and the rapidly devaluing yen currency. By following a strategy similar to MicroStrategy’s, the company aims to secure its financial future and protect its wealth against inflation and economic uncertainty. Japanese investors who own Metaplanet shares also benefit from exposure to Bitcoin’s potential upside, without being subject to Japan’s high tax rates on crypto gains, which can exceed 50%.
One of the key advantages for investors in Metaplanet is the ease of access to Bitcoin through the company’s stock, which trades on the Tokyo Stock Exchange. This provides a regulatory-compliant way for individuals and institutions to gain exposure to Bitcoin as a store of value asset and inflation hedge. The embrace of Bitcoin by public companies in Asia, such as Metaplanet, serves to further legitimize Bitcoin as a viable treasury reserve asset on a global scale.
It is important to note that Bitcoin Magazine, the source of the news about Metaplanet’s Bitcoin purchases, is owned by BTC Inc., which is a regulated capital allocator in the digital assets industry. BTC Inc. invests in various Bitcoin businesses and holds significant amounts of digital assets, including Bitcoin. This disclaimer underscores the potential conflicts of interest that may arise in reporting on Bitcoin-related news, highlighting the complex intertwined nature of the digital asset space.
