As an analyst with a background in finance and experience in following the Japanese market, I find Metaplanet’s recent surge intriguing. The company’s strategy of accumulating Bitcoin and its subsequent success is reminiscent of MicroStrategy’s approach, which has paid off handsomely for that firm. Metaplanet’s stock price increase of 158% over the last week is a testament to this strategy’s appeal, especially given Japan’s economic challenges.
Metaplanet, a Japanese company often referred to as “Japan’s MicroStrategy” on crypto social media platforms, has experienced a significant increase in share value, amounting to approximately 158%, during the past week.
After this point, the buying and selling of stock stalled for two successive days. Simultaneously, the company has emerged as the top performer among Japanese stocks, registering the greatest percentage increase.
Metaplanet’s Bitcoin Strategy Pays Off
Metaplanet has garnered notice for its approach, drawing comparisons to MicroStrategy’s well-known strategy. It’s important to note that MicroStrategy is currently the largest corporate possessor of Bitcoin. In contrast, Metaplanet has adjusted its focus to gradually acquiring more Bitcoin in the long term.
I, as an analyst, observe that Metaplanet’s share price has surged, reaching 93 Japanese yen – a significant increase from the previous closing price of 41 yen, representing a remarkable growth of 127%. The company is now on the verge of crossing the $1 billion market capitalization threshold.
As a researcher studying the Tokyo Stock Exchange (TSE) rules, I’ve come across an intriguing observation concerning stocks with share prices below 100 yen. The TSE stipulates that such stocks can only experience a daily price increase of up to 30 yen. However, during my recent analysis, I discovered that Metaplanet defied this rule by experiencing a price rise above the daily limit for two consecutive days.
Metaplanet’s advance has come to a stop at a peak daily increase of ¥30 (approximately 50%), making it the top-performing stock in Japan for the second consecutive day on the Tokyo Stock Exchange, represented by the code TSE3350, and linked to Bitcoin with the ticker symbol $BTC.
— Dylan LeClair (@DylanLeClair_) May 22, 2024
Metaplanet unveiled a new plan on Monday aimed at increasing its Bitcoin holdings. This was achieved by raising the maximum number of issuable shares by an impressive 300%.
MicroStrategy’s past tactic allows the firm to gain funds by offering new shares for sale on occasion. The procured resources will then be allocated towards acquiring more Bitcoin, making Metaplanet function as an unofficial Bitcoin Exchange-Traded Fund (ETF) for Japanese investors, without any extra fees attached.
Metaplanet’s Move to Address Japan’s Economic Challenges
After revealing its Bitcoin purchase plan on April 8, Metaplanet has obtained a total of 117.7 Bitcoins, equivalent to around $7.2 million at present. Following MicroStrategy’s lead in August 2020, Metaplanet’s shares have experienced significant growth, increasing by approximately 389% since the announcement.
Metaplanet announced on May 13 their intention to employ various financial instruments to bolster their Bitcoin holdings, similar to MicroStrategy’s approach.
The firm explained that its decision to invest in Bitcoin was driven by Japan’s mounting debt crisis and the significant decline of the yen’s value against the US dollar. Metaplanet pointed out that Japan’s debt-to-GDP ratio stands at an alarming 261% among developed countries. Furthermore, the yen has lost more than 34% of its value versus the US dollar since the start of 2021. In contrast, Bitcoin’s value against the Japanese currency has risen by approximately 190% over the past year.
Metaplanet’s shares are at present available for trading only on the Tokyo Stock Exchange, making it difficult for U.S. investors to access. However, an alternative avenue is being explored by Arnab Naskar, a co-founder of the security token platform STOKR. They plan to tokenize Metaplanet shares using the Bitcoin layer-2 network Liquid, following a similar model as they did for MicroStrategy’s stock.
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2024-05-24 01:15