The ‘MicroStrategy of Japan’—Metaplanet, Just Bought More Bitcoin—And Its Stock Price Went Up 19%

Originally known as Red Planet Japan, Metaplanet, a Japanese investment firm that started as a budget hotel operator, has recently made headlines by adding Bitcoin to its corporate treasury.  

In a press release on Monday, the investment firm announced that they’ve added another 20.381 Bitcoin — at an average price of 9,813,061 yen per BTC — to its corporate treasury, hitting its 1 billion Japanese yen investment target. This follows up on its late June announcement to acquire more BTC totaling 1 billion yen (worth a little less than $6.4 million) at the time of writing. 

Metaplanet’s Press Statements, Source: Metaplanet’s Inc 

Metaplanet’s stock, which is listed as 3550 on the Tokyo Stock Exchange, ended the day at 173 yen. This is a 19% increase from its previous closing price. At one point during the day, the stock price reached 195 yen. This is a big 34% increase from the closing price on Friday.

Reducing Yen Exposure and Tax Benefits

The Japanese yen has been weak because of low interest rates in the country for a long time. Metaplanet knows this and wants to reduce its reliance on the yen. By buying Bitcoin, the company hopes to achieve a few goals.

First, Bitcoin is limited in supply and not controlled by any government. This makes it a good protection against rising prices. Metaplanet knows this and wants to protect its investments. Second, by buying Bitcoin, Metaplanet can reduce its reliance on the weak yen.

Also, people in Japan have to pay high taxes on profits from cryptocurrencies. But by buying Bitcoin through Metaplanet, they can avoid these taxes.

Regarding tax, Metaplanet’s move also helps Japanese investors with taxes. Instead of owning Bitcoin directly (which would be taxed heavily), they can invest in it through Metaplanet. This way, they can avoid high taxes. This approach fits well with Japan’s changing views on taxing cryptocurrencies. In June 2023, Japan’s tax agency, the National Tax Agency, made it easier for new cryptocurrency companies by exempting them from some tax burdens.

Following MicroStrategy’s Path

Metaplanet’s actions are similar to those of MicroStrategy, a software company from the US. MicroStrategy made a big splash by buying a lot of Bitcoin. It’s now one of the biggest corporate owners of Bitcoin. Investors have noticed this, and Metaplanet’s stock price shows positive sentiment.

Metaplanet isn’t stopping with its first investment. On June 11, 2024, the company bought another 23.5 Bitcoin, spending 250 million yen (about $1.6 million). A little over a month later, on July 16, 2024, Metaplanet invested another $1.2 million (200 million yen) in Bitcoin. This brought its total Bitcoin holdings to 1 billion yen.

As of now, Metaplanet owns a total of 245.992 Bitcoin, worth $16.56 million.