Japanese investment firm Metaplanet has announced that it has purchased 1 billion yen ($6.5 million) worth of Bitcoin (BTC) as a core treasury asset. This move follows in the footsteps of American company MicroStrategy. Metaplanet focuses on investing in Web3 and metaverse-related businesses. The decision to adopt Bitcoin as a treasury asset was supported by Sora Ventures, UTXO Management, as well as notable individuals such as Mark Yusko and Jack Liu. Jason Fang, founder of Sora Ventures, referred to Metaplanet as “Asia’s first MicroStrategy” and stated that the adoption of BTC would allow Japanese investors to gain exposure to Bitcoin without regulatory risk. Since the announcement, Metaplanet has experienced a significant increase in its stock price, seeing an 89% rise.
Metaplanet has described its adoption of Bitcoin as a major milestone, positioning the company as a pioneer in the digital asset adoption in Japan. This strategy of using Bitcoin as a treasury asset was initially popularized by MicroStrategy, a Fortune 500 company led by Michael Saylor. MicroStrategy began purchasing Bitcoin in August 2020 when its value was around $10,000. Over the next four years, the company accumulated over 214,246 Bitcoin at an average purchase price of $33,706.00 per Bitcoin, with a total cost of $6.91 billion. Currently, MicroStrategy’s Bitcoin holdings are valued at over $15 billion, resulting in over 100% profit. Even during the bear market in 2022, when the company’s BTC holdings incurred losses, Saylor remained steadfast and refused to sell. Instead, he continued to buy more. Saylor’s approach motivated other publicly listed companies to adopt Bitcoin as a treasury asset. He claims to have also influenced Tesla CEO Elon Musk to invest $1.5 billion in BTC in January 2021.
This is just a bubble waiting to burst, and Metaplanet will be left with nothing.
Just wait until the next market crash happens, and Bitcoin becomes worthless. Good luck, Metaplanet!
Metaplanet’s stock price increase is a clear testament to the positive reception of their Bitcoin adoption. This decision might lead to exciting developments in the Japanese investment scene.
Great, now all the traditional investors will follow suit and drive up the price even more. Thanks a lot, Metaplanet!
I bet they’ll regret this decision when the government steps in with regulations that hurt their investment.