Author: Weilin, PANews

Japanese listed company Metaplanet has announced large purchases of Bitcoin multiple times since April, a move that has frequently been seen as imitating the American company MicroStrategy. As of May 23, Metaplanet holds a total of 141.07 Bitcoins, with a market value of approximately 9.6 million US dollars. Simon Gelovich, CEO of Metaplanet, stated in a recent interview that although becoming the Japanese version of MicroStrategy is a challenging goal, he hopes to provide Japanese investors with the opportunity to invest in Bitcoin through similar strategies.

Recently, after Metaplanet's transformation into investing in Bitcoin, it quickly boosted market sentiment and, driven by multiple rounds of positive news, the company's stock price has experienced a strong growth of up to 360% within two months after a long period of stagnation. This trend is similar to the rising trend of MicroStrategy's stock price after investing in Bitcoin, attracting the attention of many users.

Imitating MicroStrategy's investment in BTC, the main business used to be an economy hotel

Metaplanet, formerly known as Red Planet Hotels, was once a popular economy hotel brand favored by young people, with business operations in Thailand, Japan, the Philippines, Indonesia, and other places. However, due to the impact of the pandemic, Red Planet Hotels experienced a sharp decline in operating income and staff layoffs.

Subsequently, the company expanded into Web3 and metaverse businesses, including the WEN Tokyo project, Takumi-X project, and NFT trading platform. Now, with the continuous decline of the Japanese yen against the US dollar, it has continued to adjust its corporate strategy.

Metaplanet's official website shows that the company's business is undergoing a transformation. The website introduction states: "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, with Metaplanet using Bitcoin (BTC) as its primary treasury reserve asset and using excess cash flow to further accumulate Bitcoin. This strategic shift is due to the unique properties of Bitcoin, such as its absolute scarcity and apolitical monetary policy."

Under the company's business section, Metaplanet has added "Bitcoin consulting" services: "Metaplanet Corporation provides specialized consulting services to help companies adopt Bitcoin. The company provides strategic guidance aimed at maximizing the potential within the existing corporate framework while overseeing the entire corporate restructuring. From formulating strategies to promoting integration, Metaplanet helps companies make Bitcoin the cornerstone of future development. In addition, Metaplanet is actively developing strategic partnerships to promote the global adoption of Bitcoin. Through cooperation with industry leaders, Metaplanet is driving the continued monetization of Bitcoin as a major reserve asset."

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

As the current largest Bitcoin bull, MicroStrategy was originally a primarily IT research business, but successfully transformed after announcing the purchase of Bitcoin in August 2020, leading to a rapid increase in its stock price. Despite experiencing mixed reviews during the process of repeated borrowing and accumulating Bitcoin, its stock price has now increased by 10 times from the initial level. As of June 20, MicroStrategy holds 226,331 Bitcoins, with a total value close to 15 billion US dollars.

In a media interview, Metaplanet CEO Simon Gelovich stated, "Although becoming the Japanese version of MicroStrategy is a challenging goal, we hope to provide Japanese investors with the opportunity to invest in Bitcoin through similar strategies. Regardless of short-term price fluctuations, we plan to continue purchasing Bitcoin… We hope that in the future, Bitcoin will account for a large proportion of our balance sheet." He stated that the company "will be committed to widely disseminating the positive role of Bitcoin domestically and internationally."

When asked if they are considering purchasing digital assets other than Bitcoin, Gelovich responded, "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 seen as a weakness by supporters of other cryptocurrencies or securities, in fact, it is one of Bitcoin's greatest advantages. By directly linking electricity input to the physical world, Bitcoin becomes a rare digital asset."

Simon Gelovich stated that MicroStrategy's stock trades at a premium of 1.75 times its Bitcoin holdings. "We believe that if Metaplanet also maximizes the holdings of Bitcoin per share, it can enjoy a similar premium. In addition, we plan to conduct business in the Bitcoin ecosystem to find additional revenue opportunities."

As for whether they plan to "hedge" against Bitcoin price fluctuations? Gelovich said that they will consider various methods, but basically plan to invest in and hold Bitcoin for the long term. Regarding price fluctuations, we maintain an unwavering attitude. We do not view volatility as a "risk" in the traditional sense, but rather as an opportunity.

Frequent Bitcoin purchases lead to a 360% surge in stock price over two months.

Since April, Metaplanet's activities in purchasing Bitcoin have been very frequent. On April 9, Metaplanet announced a collaboration with Sora Ventures, Mark Yusko of Morgan Creek Capital, and others to add $6.56 million worth of Bitcoin (BTC) to its balance sheet. Two weeks later, the company made an additional purchase of 19.87 Bitcoins. On May 13, Metaplanet further announced that it would use Bitcoin as a strategic reserve asset to hedge against Japan's growing debt burden and the fluctuation of the Japanese yen.

On May 23, the company's stock price rose by 158% in the previous week. Due to the significant increase in stock price, the Tokyo Stock Exchange suspended its stock trading for two consecutive days. On June 11, Metaplanet announced another purchase of 23.35 Bitcoins, bringing its total holdings to 141.07 Bitcoins, valued at 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 (approximately $7 million) to purchase Bitcoin, which will come from the proceeds of the issuance of the company's second series of unsecured bonds. According to the company's announcement, these bonds have an annual interest rate of 0.5% and are expected to be paid on June 26, 2024, with maturity on June 25, 2025.

Driven by positive news, Metaplanet's stock price has surged by 360% within two months since transforming into investing in Bitcoin, after a long period of silence. As of June 25, the company's stock price has risen from 20 yen on April 1 to 92 yen. The highest point of the stock price occurred on June 13, reaching 112 yen. As of June 25, Metaplanet's market value has reached 16.15 billion yen (approximately $101 million).

The stock price trend of Metaplanet is very similar to the rise in stock price after MicroStrategy invested in Bitcoin. MicroStrategy's Chairman and Co-founder, Michael Saylor, has been purchasing Bitcoin since 2020, and the company's stock price has also experienced significant growth.

Currently, Metaplanet's vision and ambition are not only in investing in Bitcoin but also in diversifying development opportunities within the Bitcoin ecosystem. When asked about the launch of a Bitcoin ETF in Japan, Gelovich stated, "Currently, there is no Bitcoin ETF in Japan, which means that Japanese investors cannot easily invest in Bitcoin through securities accounts. Therefore, Metaplanet is committed to filling this gap."

He stated, "Unlike ETFs, as an operating company, Metaplanet can enter the capital market and raise funds on terms favorable to shareholders. As the first Japanese listed company strongly supporting Bitcoin, we have the ability to promote Bitcoin as a globally accepted monetary asset 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, as its exploration journey has just begun.

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