The yen plummeted, giants increased their holdings of BTC, and the stock price rose by 360%

The yen exchange rate has plummeted in recent years. Since April, the listed company Metaplanet has announced several large purchases of Bitcoin, and its frequent actions are considered to be imitating the American company MicroStrategy.

Transformation to Bitcoin Investment

As of May 23, Metaplanet held a total of 141.07 Bitcoins, with a market value of approximately US$9.6 million. Metaplanet's CEO Simon Gelovich said in a recent interview that although becoming the Japanese version of MicroStrategy is a difficult goal, he hopes to provide Japanese investors with opportunities to invest in Bitcoin through similar strategies.

Recently, after Metaplanet transformed its investment in Bitcoin, it quickly led the market sentiment. Driven by multiple rounds of good news, the company's stock price has ushered in a strong growth of up to 360% in two months after a long period of slump. This trend is similar to the upward trend of MicroStrategy's stock price after investing in Bitcoin, and it has also attracted the attention of many users. Metaplanet, formerly known as Red Planet Hotels, was once an economy hotel brand popular among young people, with business layouts in Thailand, Japan, the Philippines, Indonesia and other places. However, affected by the epidemic, Red Planet Hotels experienced a sharp decline in operating income and staff layoffs. Subsequently, the company laid out Web3 and Metaverse businesses. Including the WEN Tokyo project, the Takumi-X project, and the NFT trading platform. Now, as the yen continues to fall against the US dollar, it continues to adjust its corporate strategy. Metaplanet's official website shows that the company's business is undergoing transformation. The official website introduces: "Metaplanet Corporation (stock code 3350), a company listed on the Tokyo Stock Exchange, has begun to implement a strategic transformation.

The company's strategic focus has shifted to Bitcoin. Metaplanet uses Bitcoin (BTC) as its main treasury reserve asset and uses excess cash flow to further accumulate Bitcoin. This strategic shift is due to the unique properties of Bitcoin, such as its absolute scarcity and non-political monetary policy."

In the company's business column, Metaplanet has added a "Bitcoin consulting" service: "Metaplanet provides specialized consulting services to help companies adopt Bitcoin.

The company provides strategic guidance aimed at maximizing potential within the existing corporate framework while overseeing the entire corporate restructuring. From formulating strategy to promoting integration, Metaplanet Helping companies use Bitcoin as a fundamental pillar for future development. In addition, Metaplanet is actively developing strategic partnerships to promote the popularity of Bitcoin around the world. By working with industry leaders, Metaplanet promotes the continued monetization of Bitcoin on the road to becoming a major reserve asset. ”

Japanese version of MicroStrategy

On June 25, Metaplanet stated on the X platform that it had established a wholly-owned subsidiary in the British Virgin Islands to strengthen the strategic management of BTC assets.

As the current largest Bitcoin bull, MicroStrategy was originally an IT company mainly engaged in research business, but after announcing the purchase of Bitcoin in August 2020, it successfully transformed and its stock price rose rapidly. Despite experiencing mixed reviews in the process of repeatedly borrowing and accumulating Bitcoin, its stock price has now reached 10 times the initial level. As of June 20, MicroStrategy held 226,331 bitcoins with a total value of nearly $15 billion.

Metaplanet CEO Simon Gelovich said in an exclusive interview with the media: "Although becoming the Japanese version of MicroStrategy is a difficult goal, we hope to provide Japanese investors with the opportunity to invest in Bitcoin through a similar strategy.

Regardless of short-term price fluctuations, we plan to continue purchasing Bitcoin... We hope that Bitcoin will account for a large proportion of the balance sheet in the future." He said that the company "will be committed to widely disseminating the positive role of Bitcoin in Japan and abroad."

When asked if he considered buying digital assets other than Bitcoin, Gelovich replied: "We only focus on Bitcoin. Because we believe that Bitcoin is the only truly decentralized digital asset. Although Bitcoin's "Proof of Work" consensus mechanism is often regarded as a weakness by supporters of other encrypted assets or securities, in fact, it is one of Bitcoin's greatest advantages. Directly connected to the physical world through electricity input makes Bitcoin a rare digital asset."

Are there plans to "hedge" against Bitcoin price fluctuations? Gelovich said that various methods will be considered, but basically plans to invest and hold Bitcoin for the long term. We remain unwavering in our attitude towards price fluctuations. We not only regard volatility as a "risk" in the traditional sense, but also as an opportunity.

Frequent purchase of Bitcoin, stock price soars in two months

Since April, Metaplanet has been buying Bitcoin frequently. On April 9, Metaplanet announced that it had partnered with Sora Ventures, Morgan Creek Capital's Mark Yusko and others to add $6.56 million worth of Bitcoin (BTC) to its balance sheet. Two weeks later, the company purchased an additional 19.87 Bitcoins.

On May 13, Metaplanet further announced that it would use Bitcoin as a strategic reserve asset to hedge Japan's growing debt burden and the volatility of the yen.

On May 23, the company's stock price rose 158% in the previous week. Due to the sharp rise in stock prices, the Tokyo Stock Exchange suspended trading in its shares for two consecutive days. On June 11, Metaplanet announced that it had added another 23.35 Bitcoins, bringing its total holdings to 141.07 Bitcoins, worth approximately $9.6 million.

The day before yesterday (June 24), Metaplanet announced that its board of directors had approved the use of 1 billion yen (about 7 million US dollars) to purchase Bitcoin. The funds will come from the proceeds of the company's second ordinary bond (with guarantee). According to the company's announcement, the annual interest rate of these bonds is 0.5%, which is expected to be paid on June 26, 2024 and mature on June 25, 2025.

Driven by the news, Metaplanet's stock price has soared 360% in two months since its transformation to investing in Bitcoin after a long period of silence. As of June 25, the company's stock price rose from 20 yen on April 1 to 92 yen. The highest point of the stock price occurred on June 13, reaching 112 yen. On June 25, Metaplanet's market value reached 16.15 billion yen (about 101 million U.S. dollars).

This stock price trend of Metaplanet is very similar to the rise in MicroStrategy's stock price after investing in Bitcoin. MicroStrategy Chairman and Co-founder Michael Saylor began buying Bitcoin in 2020, and his company's stock price has also experienced significant growth.

Filling the gap

At present, Metaplanet’s vision and ambition is not only to invest in Bitcoin, but also to use opportunities within the Bitcoin ecosystem for diversified development. When asked about the launch of a Bitcoin ETF in Japan, Gelovich said: "There is currently no Bitcoin ETF in Japan, which means that Japanese investors cannot easily invest in Bitcoin through securities accounts, so Metaplanet is committed to filling this gap." He said, "Unlike ETFs, as an operating company, Metaplanet can access the capital markets and raise funds on terms that are beneficial to shareholders. As the first Japanese listed company that strongly supports Bitcoin, we have the ability to promote Bitcoin to become a widely accepted monetary asset around the world through business expansion and information dissemination." Overall, Metaplanet's strategic adjustment can be seen as a bold and innovative attempt, but it may also face challenges in the future. Over time, the market will witness how Metaplanet continues to create value in the journey of Bitcoin, and its journey of exploration has just begun.

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