Metaplanet (3350), a provider of Web3 infrastructure, has experienced a remarkable surge in its Tokyo-listed stock, soaring by nearly 90% within just 48 hours following the incorporation of $6.56 million worth of Bitcoin (BTC) into its balance sheet. According to insights from Google Finance, the company’s shares are currently being traded at 36 yen, marking an impressive 89% increase for the day.
This surge is primarily attributed to Metaplanet’s strategic move to diversify its balance sheet by incorporating Bitcoin, a decision made in collaboration with notable partners including Sora Ventures and Mark Yusko from Morgan Creek Capital. Formerly recognized as Red Planet and focused on budget hotel operations, Metaplanet has transitioned its business model to become a Web3 software developer.
The decision to integrate Bitcoin into its treasury assets stems from various factors. Firstly, it aims to mitigate exposure to the Japanese yen, which has been notably affected by Japan’s low-interest-rate environment and diminished global currency status over the years. By incorporating Bitcoin, Metaplanet seeks to leverage the cryptocurrency’s potential as a hedge against inflation, a tool for bolstering macroeconomic resilience, and a source of long-term capital appreciation.
This strategic move mirrors the approach adopted by MicroStrategy, a software developer based in Tysons Corner, Virginia, which gained attention in 2020 for its decision to allocate Bitcoin to its corporate treasury holdings. The correlation between MicroStrategy’s stock price and Bitcoin’s value fluctuations underscores investors’ sentiment towards the cryptocurrency market.
Jason Fang, the managing partner and co-founder of Sora Ventures, highlighted the significance of the partnership with Metaplanet, offering Japanese investors an avenue to access cryptocurrencies through a publicly traded entity, thereby bypassing the need to directly hold digital assets. This alternative investment approach also addresses concerns regarding high taxes on unrealized crypto gains prevalent in Japan.
Various major corporate investors, including MicroStrategy, have reaped significant profits from their Bitcoin investments. At current market prices, MicroStrategy’s Bitcoin holdings are valued at over $12.57 billion, reflecting substantial unrealized profits. Bitcoin’s current price hovers around $69,000, approaching its all-time high of $73,750 registered on March 14.