Metaplanet Emerges as Top Gainer in Japanese Stocks After Adding Bitcoin to Reserves
Investment firm Metaplanet has experienced a remarkable surge in its shares, skyrocketing 158% over the past week and emerging as the highest gainer among all Japanese stocks.
The company’s share price currently stands at 93 Japanese yen, experiencing a staggering 127% increase in just two days.
The rapid growth even triggered the Tokyo Stock Exchange to activate a circuit breaker trading halt on multiple occasions within the past week.
With a market cap of nearly $1 billion (14.8 billion Japanese yen), Metaplanet is making significant waves in the financial market.
This success can be attributed to the company’s adoption of a strategy similar to that of MicroStrategy, the largest corporate holder of Bitcoin.
Since announcing its Bitcoin investment strategy on April 8, Metaplanet has accumulated 117.7 Bitcoin, currently valued at $7.2 million. Consequently, its stock has surged by 389%.
In a statement issued on May 13, Metaplanet revealed its intention to employ a range of capital market instruments strategically to bolster its Bitcoin reserves, mirroring MicroStrategy’s approach.
The firm cited the need to hedge against Japan’s mounting debt burden and the rapid depreciation of the Japanese yen.
Japan holds the unfortunate distinction of having the worst debt-to-GDP ratio among developed countries, currently standing at 261%.
Additionally, the Japanese yen has depreciated by over 34% against the United States dollar since the beginning of 2021.
Metaplanet views its Bitcoin investment strategy as a direct response to these economic pressures.
While Metaplanet is currently only available for trading on the Tokyo Stock Exchange, limiting access to U.S. investors, there are plans underway to tokenize its shares on the Bitcoin
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