Japanese Firm’s Stock Price Soars After Adopting Bitcoin Strategy
Metaplanet, a company specializing in Web3 infrastructure, experienced a nearly 90% surge in its stock value on the Tokyo Stock Exchange within two days.
The jump in price occurred after the company announced a collaborative investment of $6.56 million in Bitcoin, involving partners such as Sora Ventures and Mark Yusko from Morgan Creek Capital.
Originally a budget hotel chain known as Red Planet, the company has since transitioned into a Web3 software development firm.
The company expressed intent to reduce its reliance on the Japanese yen. This decision comes in the wake of the yen's depreciation, a result of Japan's prolonged period of low interest rates.
In March, the central bank made a notable adjustment, raising short-term interest rates to between 0 and 0.1% from a previous -0.1%, marking the first increase in 17 years.
Metaplanet wrote:
The Company’s decision to incorporate Bitcoin into its treasury assets is driven by a multifaceted understanding of its potential as a hedge against inflation, a tool for macroeconomic resilience, and a basis for long-term capital appreciation.
This approach mirrors the strategy adopted by MicroStrategy, a software company based in Virginia, which announced in 2020 its intention to accumulate Bitcoin.
MicroStrategy is currently recognized as the largest corporate holder of Bitcoin by bitcointreasuries.net, with a portfolio exceeding 214,000 Bitcoin valued at over $15 billion.
Jason Fang, the managing partner and co-founder of Sora Ventures, which was involved in the initiative to include Bitcoin in Metaplanet's financial reserves, shared on X that this move offers Japanese investors a way to gain exposure to the asset through a publicly listed entity.