Metaplanet Announces Adoption of Bitcoin as Core Treasury Asset, Stock Price Nearly Doubles
Metaplanet, a relatively unknown investment firm trading on the Tokyo Stock Exchange, has made a bold move that has sent shockwaves through the financial world. The company has announced plans to adopt Bitcoin (BTC) as its “core treasury reserve asset,” a decision that has nearly doubled its stock price in a matter of days.
In a tweet on Monday, Metaplanet confirmed that it had already allocated a staggering 1 billion JPY (approximately $6.56 million) towards Bitcoin, representing almost half of its total market capitalization at the time. The company stated that this strategic shift is not just about embracing digital assets, but also about leading the way in a future where finance and innovation converge.
Following the announcement, Metaplanet’s stock price skyrocketed by 90%, jumping from 19 JPY at Monday’s close to 36 JPY at Tuesday’s close. The trading volume also saw a significant increase, with 69 million shares being traded on the day compared to the average of 928,000 shares, according to Google Finance data.
This move by Metaplanet mirrors a trend seen with other companies that have incorporated Bitcoin into their treasury reserves, most notably MicroStrategy. Since adopting Bitcoin as its primary asset in August 2020, MicroStrategy’s stock price has surged by almost 1,000%, showcasing the potential impact of integrating digital assets into traditional financial strategies.
Metaplanet’s decision to embrace Bitcoin has drawn comparisons to MicroStrategy, with CEO Simon Gerovich even retweeting posts likening the company to “Asia’s first MicroStrategy.” The move has garnered support from industry players like Sora Ventures founder Jason Fang, who highlighted the benefits of gaining exposure to Bitcoin without the burden of unrealized gains tax.
Despite the lack of a standardized Bitcoin ETF in Japan, Metaplanet’s move signals a growing acceptance of digital assets in traditional financial markets. The company’s backers, including UTXO Management, Jack Liu, and Mark Yusko, are optimistic about the potential for Bitcoin to revolutionize the investment landscape.
While Metaplanet has yet to comment on whether it will explore other digital assets like Ethereum (ETH), its bold step towards integrating Bitcoin into its operations marks a significant milestone in the evolution of traditional finance. As the industry continues to adapt to the rise of digital assets, Metaplanet’s move could pave the way for other companies to follow suit and embrace the future of finance.
