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Metaplanet’s Bitcoin Strategy Success Sparks 2,450% Stock Rally

Metaplanet’s Bitcoin Strategy Success Sparks 2,450% Stock Rally
19 Dec 2024

Metaplanet, often referred to as "Japan’s MicroStrategy," is making headlines with its audacious Bitcoin acquisition strategy, fueling a meteoric rise in its stock price.

The Japanese investment firm’s decision to issue zero-interest bonds worth ¥4.5 billion ($30 million) to fund additional Bitcoin purchases has sent ripples through the financial markets.

On December 17, Metaplanet’s stock price soared 51% in just five trading sessions, reaching an all-time high of ¥4,270 per share. This remarkable climb pushed the company’s year-to-date gains to an astounding 2,450%, elevating its market capitalization beyond the $1 billion mark. Over ¥27.8 billion ($180 million) worth of shares were traded during this period, showcasing heightened investor interest.

Metaplanet’s stock price

Source: X

Simon Gerovich, CEO of Metaplanet, remarked on the market’s response, stating, “The record trading volume and share price growth highlight the confidence investors have in our Bitcoin-driven strategy.”

Leveraging Zero-Interest Bonds for Bitcoin Acquisition

Metaplanet’s most recent deal has seen the issue of zero-interest bonds maturing on June 16, 2025. They are released in tranches to let the firm make strategic purchases of Bitcoin with less cost of periodic interest, instead of getting benefits through discounting: they buy low and are allowed redemption against the full face value on maturity.

Since May 2024, Metaplanet has accumulated more than 1,000 BTC, joining the ranks of Asia’s largest corporate holders of the digital currency. The ambitious approach is comparable to US-based MicroStrategy, famed for its serious Bitcoin treasury.

Leveraging Zero-Interest

Source: X

It plans to increase its Bitcoin reserves further by issuing up to ¥5 billion more bonds via private placements. These bonds, to be issued in collaboration with EVO FUND, will continue supporting the company’s long-term Bitcoin-focused growth strategy. Details regarding interest rates and maturity dates for these bonds are yet to be finalized.

Shareholder Rewards Program

Beyond financial gains, Metaplanet is introducing a Bitcoin-based rewards program for its shareholders. Shareholders owning at least 100 shares as of December 31, 2024, will be eligible for a lottery-based prize pool of ¥30 million ($199,500).

Approximately 2,350 shareholders will receive varying amounts of Bitcoin as part of this initiative, reflecting the company’s commitment to sharing the benefits of its cryptocurrency strategy.

The rewards program is being executed in partnership with SBI VC Trade, a subsidiary of SBI Holdings.

Driving Institutional Bitcoin Adoption in Japan

Metaplanet’s approach aligns with a broader trend of growing institutional interest in Bitcoin worldwide. It taps into zero-interest bonds, assuming Bitcoin as a treasury reserve asset.

Industry observers say the strategy pursued by Metaplanet may encourage other Japanese companies to seek ways of benefiting from the cryptocurrency market. The success of the company proves that Bitcoin can be a good investment tool for corporate treasuries.

The growing Bitcoin holdings of Metaplanet bring a certain amount of opportunity and challenges. Its aggressive bond issuances and shareholder incentives suggest confidence in its strategy, but critics have raised concerns over its reliance on such a highly volatile asset class.

With questions lingering about its financial stability and the broader implications of such an unconventional approach, Metaplanet represents a case study of the risks and rewards of corporate Bitcoin adoption.


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