The stock price of investment business Metaplanet’s Bitcoin Reserves has exploded, increasing by 158 percent in the last seven days, making it the top gainer among Japanese stocks. An incredible 127% gain in just two days has put the company’s share price at 93 Japanese yen.
Indeed, the Tokyo Stock Exchange had to initiate a circuit breaker trading halt many times in the past week due to the quick growth. There has been a lot of buzz around Metaplanet recently, thanks to its massive market worth of nearly $1 billion (14.8 billion Japanese yen).
Metaplanet Follows the Footsteps of MicroStrategy
The company’s success may be traced back to its approach, which mirrors that of MicroStrategy, the most significant corporate Bitcoin holder. Metaplanet has amassed 117.7 Bitcoin, worth $7.2 million, since it announced its Bitcoin investing strategy on April 8. The result is a 389% increase in its stock price. Like MicroStrategy, Metaplanet plans to strategically use various capital market tools to increase its Bitcoin reserves; this was announced in a statement made public on May 13.
The company said it had to take precautions due to the rapid fall of the yen and Japan’s growing debt. With a debt-to-GDP ratio of 261%, Japan has the unenviable distinction of being the most indebted developed nation. Furthermore, since the start of 2021, the value of the Japanese yen has dropped by more than 34% compared to the USD.
These economic forces are the impetus for Metaplanet’s Bitcoin Reserves investment strategy even though Metaplanet is working on tokenizing. Shares on Liquid, a Bitcoin layer-2 network, with American investors. Can no longer buy the company because of its listing on the Tokyo Stock Exchange. Arnab Naskar, who helped develop the STOKR security token platform, has already said he plans to tokenize Metaplanet shares and MicroStrategy stock.
Among other things, Metaplanet decided to add Bitcoin to its treasury assets last month. As a first step, it plans to reduce its reliance on the Japanese yen, which has taken a beating due to Japan’s historically low interest rates. Regarding the yen’s fragility, Metaplanet voiced its concerns in a shareholder update and emphasized. Bitcoin’s abilities as an inflation hedge, a tool for macroeconomic resilience, and a source of long-term capital appreciation.
Corporate Bitcoin Holders Start to Reap Rewards
Profits for Microstrategy and other large corporate Metaplanet’s Bitcoin Reserves investors have soared. With the current market price of around $65,000, MicroStrategy’s position now commands. A total valuation of over $12.57 billion, according to data aggregated by Saylortracker.
As a result, the firm is sitting on about $6.5 billion in unrealized paper profits. A yield-to-date gain of nearly 104% from an investment allocation began under Saylor in 2020. Bitcoin is selling for over $69,000, a decrease of almost 3% from yesterday. The leading cryptocurrency trades at $73,750, just 5% off its March 14 all-time high.
