Metaplanet anticipated for enduring victory in the long term, asserts cryptocurrency expert, following Bitcoin's 7,500% surge.
Going for the Moon: How Metaplanet Became Asia's Quantum Leap in Bitcoin Investments
Take a dive into the audacious journey of a struggling Japanese hotel conglomerate, Metaplanet, and watch as they moonwalk their way into becoming the fastest-growing Bitcoin proxy in Asia
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Metaplanet Surpasses Tesla in Bitcoin Holdings
In a move shaking up the corporate world, Metaplanet Inc., a Japan-based firm listed on the stock exchange, has outpaced tech giant Tesla in the race for corporate Bitcoin (BTC) holdings. This achievement comes after its latest purchase of 1,234 BTC for roughly $133 million.
In a disclosure filed on June 25, the company disclosed that it had shelled out around 19.3 billion yen (approx. $133 million) for the bitcoins, paying an average price of ~15.6 million yen per BTC ($107,900). With this purchase, Metaplanet now boasts a staggering 12,345 BTC in its coffers, putting it in fifth place among global firms with the largest Bitcoin holdings ahead of Tesla with 11,509 BTC.
The Bitcoin Shift: From Hotels to Hodling
Founded in 1999, Metaplanet huddled in the shadows of the corporate world, mainly focusing on the hospitality sector and investor relations consultancy, maintaining a low profile in Japan's economic landscape. However, the company's financial woes started to unravel as Japan's economy grappled with long-term structural stagnation, ballooning public debt, and interest rates struggling to gain traction.
In early 2024, the leadership team of Metaplanet saw the writing on the wall and took the bolder step of shifting direction. The board initially embraced a Bitcoin-first treasury strategy, declaring Bitcoin as the primary reserve asset back in April 2024. Company executives pointed to a weakening yen and plummeting real returns on cash as some of the driving factors behind the change.
Shortly after, Metaplanet published its groundbreaking "Bitcoin Manifesto," vowing to prioritize Bitcoin across its treasury and capital allocation decisions.
The Bitcoin Roller Coaster: Ups and Downs
On April 1, 2024, Metaplanet kicked off its Bitcoin-buying spree, splurging on 117.7 BTC at an average cost of ~10.2 million yen per coin (~$6.5 million). The announcement ignited a wave of investor interest, sending Metaplanet's stock skyward from ~20 yen to 35 yen the same day (~$0.13 to $0.22), and as of June 27, MTPLF stocks trade at 1,500 yen—a staggering 75-fold increase since the Bitcoin-strategy was adopted.
As the Bitcoin price continued to soar and investor appetite grew, Metaplanet ramped up its ambitions. It launched the 210 Million Plan in January 2023, aiming to snatch up 30,000 BTC by the end of 2025 and 100,000 BTC by the end of 2026, and later unveiled the more aggressive 555 Million Plan, promising to acquire up to 210,000 BTC by the end of 2027.
A Larger Role in the Limelight
Metaplanet's emphatic and unabashed shift to Bitcoin as its primary asset has completely overhauled its financial profile. After years of operating in the red, the company reported a full-year operating profit in 2024—its first return to profitability since 2017. Revenue has surged from 261 million yen (approximately $1.8 million) in fiscal 2023 to 1062 million yen (nearly $7.3 million) in 2024, while the company tallied an operating profit of 350 million yen (about $2.4 million), reversing a 468 million yen (roughly $3.2 million) loss in the previous year.
Metaplanet's newfound financial brawn has cast a spotlight on the firm, transforming it into Asia's largest corporate holder of Bitcoin. Within Japan, it stands alone as the only publicly-listed firm using Bitcoin as its primary reserve asset.
The company is now a darling of investors, attracting an ever-growing army of over 60,000 shareholders (which included few thousand not so long ago). Highlighting Japan's uniquely unfavorable tax environment that can levy up to 55% on capital gains from direct crypto holdings, investors in Kyoto have gravitated towards equity-based exposure for a more palatable tax burden. Institutional attention has also magnified as Metaplanet's share has been incorporated into several exchange-traded funds (ETF) both domestically and internationally.
The Bitcoin Domino Effect: Asia Awakes
To better understand the magnitude of Metaplanet's influence within the industry, Crypto.news spoke with Charlie Hu, co-founder of Bitlayer, who shared his views on the firm's trajectory and evolving strategy.
Charlie Hu sees the contrast between Metaplanet's approach and that of MicroStrategy as both regional and structural: "MicroStrategy's approach is rooted in raising convertible debt and a long-term hodl thesis, whereas Metaplanet's seems more regionally specific, making Bitcoin an integral part of its corporate identity while leading the wave of institutional adoption in Asia."
Hu envisions Metaplanet's 210,000 BTC goal as a potential precedent to broader corporate trends in Asia: "Large institutional purchases can significantly impact supply dynamics, signaling to other corporations that Bitcoin investment is no longer a fringe activity. It could kick off conversations around regulation as well."
On the sustainability of Metaplanet's profit model, which heavily relies on Bitcoin's price appreciation, Hu emphasizes the importance of communication and risk management: "We understand that market volatility is inherent in Bitcoin; if risks are deftly managed and consistently communicated to investors, the company will be poised for long-term success."
So far, Metaplanet’s strategy has capitalized on a favorable macro and market cycle. The future of the company may hinge on how nimbly it adapts in the face of less auspicious conditions.
- Metaplanet's singular focus on Bitcoin (BTC) has led them to surpass Tron and XRP in their crypto holdings, making them the fourth largest crypto holding company.
- The sudden shift by Metaplanet Inc., a Japanese firm, from traditional finance to crypto has been upcoming due to their Bitcoin-first treasury strategy, lastly announced on April 2024, positioning Bitcoin as their primary reserve asset.
- Metaplanet's aggressive approach to Bitcoin acquisition includes the recent purchase of 1,234 BTC, boosting their crypto token portfolio's worth to approximately $133 million.
- The Bitcoin boom in Asia, initiated by Metaplanet, is creating a domino effect, with other businesses bound to take a cue from their approach, particularly in adopting crypto as their primary asset or reserve.
