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Japan’s Bitcoin Boom: Metaplanet’s Stock Skyrockets 4,000%

Mellissa · 10 Feb10.9K Views

Image Credit: Bloomberg

The pro-crypto stance of U.S. President Donald Trump is driving a surge in Bitcoin demand in Japan, benefiting companies like Metaplanet Inc., whose stock has skyrocketed over 4,000% in the past year—the highest gain among Japanese equities and one of the most significant globally, according to Bloomberg. Bitcoin itself reached an all-time high of $109,241 on Jan. 20, the day of Trump’s second-term inauguration, though it has since retreated as his trade policies triggered global uncertainty.

Metaplanet, once a hotel development company, has repositioned itself as a Bitcoin-focused entity, mirroring the strategy of MicroStrategy, a U.S. firm that has amassed over $45 billion in Bitcoin holdings. The transformation was led by CEO Simon Gerovich, a former Goldman Sachs equity derivatives trader, who was inspired after learning about MicroStrategy’s approach. Facing a pandemic-induced slowdown, Metaplanet shifted to a "Bitcoin-first strategy" in early 2024, shutting down all but one of its hotels.

Since making the switch, Metaplanet’s shareholder base has expanded to nearly 50,000, a 500% increase in 2024. The company has attracted institutional investors like Capital Group, which also invests in MicroStrategy, but the majority of its shareholders are retail investors, many with limited experience in cryptocurrency markets.

“Metaplanet relies heavily on retail investors, making it essential for them to clearly communicate their strategy,” said Rhiannon Ewart-White, a Japan equity analyst at UK-based Storm Research. Despite six consecutive years of losses, Metaplanet is projected to report a profit in its upcoming fourth-quarter earnings, which could further boost its stock, according to Ewart-White.

Gerovich, who attended Trump’s inauguration last month, stated that the anticipation of a more Bitcoin-friendly regulatory landscape in the U.S. has fueled increased demand for the cryptocurrency in Japan.

Metaplanet is not the only Japanese company following MicroStrategy’s playbook. Software firm Remixpoint Inc. announced plans to invest ¥1.2 billion (approximately $8 million) in Bitcoin last September, leading to a 300% surge in its stock.

A significant portion of Metaplanet’s retail investors have purchased shares through Japan’s revamped Nippon Individual Savings Account (NISA) program, which was updated in early 2024 to encourage long-term investments. Among them is 18-year-old Tokyo-based robotics student Getto Hagiya, who made his first investment through NISA after being influenced by Trump’s crypto policies. “I believe Bitcoin will be an essential asset in the future,” he said, adding that Metaplanet’s offer of free Bitcoin merchandise at shareholder meetings also attracted him.

Japan’s tax laws make direct Bitcoin investments less appealing, with capital gains taxes reaching up to 55%. Investing in Bitcoin-related stocks through NISA provides a tax-free alternative for small-scale investors.

Gerovich, an Australian native, believes that Japan’s weakening yen has made Bitcoin an attractive hedge against currency devaluation. As of Jan. 28, Metaplanet held 1,762 Bitcoin, valued at around $171 million, and plans to expand its holdings to 10,000 by the end of 2025 and 21,000 by the end of 2026. To finance these acquisitions, the company plans to issue 21 million shares through moving strike warrants.

Additionally, Metaplanet intends to rebrand its sole remaining hotel, the Royal Oak in Tokyo’s Gotanda district, as “The Bitcoin Hotel,” aiming to host Bitcoin-related events and seminars. While the company retains a modestly profitable hotel business, Ewart-White cautions that its reliance on Bitcoin makes it vulnerable to market downturns. “If Bitcoin’s price crashes, it could put the company in a tough spot,” she said.