Metaplanet, a little-known investment company listed on the Tokyo Stock Exchange, has announced plans to adopt Bitcoin (BTC) as a “core treasury reserve asset,” which will push its stock price almost 2. It’s doubled.
The company acknowledged in a tweet on Monday that it had already put 1 billion yen (or $6.56 million) into the asset, nearly half of its total market capitalization at the time.
“This strategic shift aims not only to embrace digital assets, but also to pioneer a future where finance and innovation converge at the core,” the company said. I have written.
Following this announcement, Metaplanet’s stock price increased to jumped 90% Monday’s closing price of 19 yen to Tuesday’s closing price of 36 yen. Trading volume for the day was 69 million shares, significantly higher than the daily average of 928,000 shares, according to the paper. Google Finance data.
This is a common pattern for companies adopting Bitcoin, most exemplified by business intelligence company MicroStrategy (MSTR). Since adopting Bitcoin as its primary asset in August 2020, the company’s stock price has increased almost 1000%, from $146 to over $1,400.
Metaplanet’s adoption of Bitcoin has led to a series of comparisons with MicroStrategy. In fact, the company’s CEO, Simon Gerovich, himself retweeted several posts on his Twitter account, likening Metaplanet to “his MicroStrategy, the first in Asia.”
“This product will allow Japanese people to access Bitcoin without paying unrealized gains tax, which can reach as high as 55%.” tweeted Jason Fang, founder of Sora Ventures. “Also, anyone with an account on the Tokyo Stock Exchange will be able to use Bitcoin without regulatory risk.”
Fang’s company, along with UTXO Management, former OKX CEO Jack Lew, and Morgan Creek Capital CEO Mark Yusko, helped Metaplanet move into Bitcoin. are doing.
Japan currently does not have a standardized Bitcoin ETF, but investment funds have recently been able to start holding digital assets after U.S. regulators approved a Bitcoin Spot ETF in January. .
In the U.S., MicroStrategy stock is also finding a role for investors as a “Bitcoin ETF with benefits”, including low fees and the use of moderate leverage to acquire more BTC. It is currently up 102% year-to-date, while Bitcoin is up 57%.
According to its website, Metaplanet’s businesses range from investments to real estate to Web3 consulting. There is no word yet on the purchase of other digital assets commonly associated with Web3, such as Ethereum (ETH).
Metaplanet did not respond Decryption Request for comments.
Edited by Ryan Ozawa.
