Key Takeaways:
- Metaplanet, transitioning from budget hotels to Web3, invested $6.56 million in bitcoin with partners including Sora Ventures, causing its shares to surge by 90%.
- The investment serves as a hedge against the weakening Japanese yen and low-interest rates, aiming to offer Japanese investors an efficient way to engage with cryptocurrency amid a favorable tax setup.
- Metaplanet’s strategy mirrors MicroStrategy’s, using bitcoin investment for macroeconomic stability and growth, amidst Japan’s shifting tax policy on cryptocurrency gains.
Metaplanet, originally known as Red Planet Japan, transitioned from operating budget hotels to developing Web3 technologies.
Recently, the company’s shares witnessed a staggering 90% increase following its decision to invest $6.56 million in bitcoin, in collaboration with Sora Ventures and other cryptocurrency investors.
Today, we're thrilled to announce a groundbreaking shift in our financial strategy, as we embrace Bitcoin as the core treasury asset of the Company going forward by committing an initial JPY 1 billion. This strategic pivot is not just about embracing digital assets but also about… pic.twitter.com/OASxj9IBPG
— Metaplanet Inc. (@Metaplanet_JP) April 8, 2024
This strategic move aims to diminish the company’s reliance on the Japanese yen and provides Japanese investors with an alternative route to engage with cryptocurrency, benefiting from a favorable tax setup.
Previously a budget hospitality provider, Metaplanet has rebranded and repurposed itself into a Web3 infrastructure entity.
Its decision to diversify its treasury with bitcoin in partnership with notable firms like Sora Ventures and individuals including Morgan Creek Capital’s Mark Yusko has dramatically influenced its market performance, with shares skyrocketing nearly 90% within a two-day span.
Japanese Firm Metaplanet to Add $659M in #Bitcoin to Its Treasury, Shares Soar 90% in Response https://t.co/kqbK3GmCUO
— Bitcoin.com News (@BTCTN) April 9, 2024
The pivot towards bitcoin investment is largely a response to the declining strength of the Japanese yen, exacerbated by Japan’s prolonged low-interest-rate environment.
Recently, Japan’s central bank made a significant move by raising short-term interest rates for the first time in 17 years, aiming to adjust from -0.1% to a range of 0-0.1%.
This change highlights the yen’s weakened stance as a major global currency.
JUST IN: 🇯🇵 Japanese Public Company Metaplanet stock is up almost 90% after they announced the $BTC Strategy.
— Bitcoin Magazine (@BitcoinMagazine) April 9, 2024
The #Bitcoin Effect 🙌 pic.twitter.com/ixbmo2ZlPJ
Metaplanet articulates its bitcoin strategy as a hedge against inflation, aiming for macroeconomic stability and potential long-term value growth.
This approach mirrors the strategy of MicroStrategy, a Virginia-based software company that has significantly invested in bitcoin since 2020.
MicroStrategy’s market value has since fluctuated in tandem with bitcoin’s price changes, reflecting the broader investor sentiment towards cryptocurrencies.
JUST IN: The stock of Japan's @Metaplanet_JP surged 90% after the company added 1 billion yen worth of #BTC to its balance sheet
— Simply Bitcoin (@SimplyBitcoinTV) April 9, 2024
They want to become ASIA’s MICROSTATEGY pic.twitter.com/lk08xSdHh8
Notably, MicroStrategy is recognized as the largest corporate holder of bitcoin, with an investment exceeding 214,000 bitcoins valued at over $15 billion.
Jason Fang of Sora Ventures, a participant in Metaplanet’s bitcoin initiative, emphasized the opportunity for Japanese investors to gain cryptocurrency exposure through a publicly listed entity.
This method circumvents the hefty taxes associated with direct cryptocurrency holdings, which are subject to taxation on unrealized gains.
Japanese firm #Metaplanet invests $6.5M in #Bitcoin, following MicroStrategy's strategy, to use $BTC as a core treasury asset.
— Satoshi Club (@esatoshiclub) April 9, 2024
The move boosted Metaplanet's stock by 89% post-announcement, aiming to give Japanese investors Bitcoin exposure without regulatory risk. pic.twitter.com/Um7ZjCYnI4
This tax policy has been a point of contention, leading to adjustments and exemptions for tokens issued by cryptocurrency startups as declared by Japan’s National Tax Agency in June 2023.
About The Author
Fleming Airunugba, a seasoned Web3 and crypto content expert, leverages his deep understanding of blockchain technology to bring the latest and most impactful news to the crypto community.
With a knack for engaging storytelling and strategic content creation, Fleming is dedicated to educating and inspiring his audience with insightful analysis on cryptocurrencies, NFTs, and the future of digital finance.
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