The next generation of MicroStrategy? Japanese public corporation purchases Bitcoin
Japanese company Metaplanet announced that it would purchase 1 billion yen (about $6.5 million) worth of Bitcoin as part of its corporate finance strategy, a move that mimicked MicroStrategy’s high-profile Bitcoin hoarding.
Metaplanet, a diversified company and a public company listed on the Tokyo Stock Exchange, has unveiled a Bitcoin purchase initiative for X. The company cited hedging risks from currency devaluation and inflation as motivation.
The purchase is an “early commitment” and part of a broader acceptance of Bitcoin’s potential, according to the announcement. It is supported by partners such as legendary hedge fund manager Mark Yusko, UTXO Management, and Sora Ventures.
By adopting Bitcoin treasury reserves similar to MicroStrategy, Metaplanet aims to leverage Bitcoin’s strengths while mitigating risks. MicroStrategy has pioneered enterprise Bitcoin treasury strategies, purchasing over $6 billion in BTC since 2020.
Metaplanet’s stock price soared 89.47% on Tuesday following the Bitcoin announcement.
JUST IN: 🇯🇵 Shares of Japanese listed company Metaplanet rose nearly 90% following the announcement. $BTC strategy.
that much #Bitcoin Effect 🙌 pic.twitter.com/ixbmo2ZlPJ
— Bitcoin Magazine (@BitcoinMagazine) April 9, 2024
Sora Ventures’ Jason Fang called Metaplanet’s Bitcoin-focused replication “Asia’s first MicroStrategy.”
The move also gives Japanese investors indirect exposure to Bitcoin without the high unrealized gains tax, which can be as high as 55% in Japan. Metaplanet’s Bitcoin funds will be held in a tax-advantaged structure that only the company can access.
By purchasing Bitcoin, Metaplanet joins the growing list of public companies leveraging Bitcoin to maximize shareholder value. If MicroStrategy proves the effectiveness of its model, it will likely be adopted by more institutions.
For Metaplanet, Bitcoin offers opportunities beyond investment returns, such as accelerating Bitcoin initiatives.
This announcement is an optimistic sign about Bitcoin’s traction in Asia. Metaplanet is providing investors with a regulated path to gain BTC exposure. If successful, it is expected that more listed companies in the region will follow the template.
