PANews reported on February 10 that according to Bloomberg, the Japanese company Metaplanet Inc.'s stock price has risen by more than 4,000% in the past 12 months, making it one of the companies with the highest growth in the Japanese stock market during the same period. This growth was mainly driven by Bitcoin investment strategies, influenced by the Trump administration's crypto-friendly policies and the rising demand for Bitcoin in the Japanese market.
Metaplanet was formerly Red Planet Japan Inc., which mainly engaged in hotel business. Due to the operating difficulties caused by the epidemic, it switched to a "Bitcoin first" strategy in early 2024. As of January 28, the company held 1,762 bitcoins (about US$171 million) and planned to increase its holdings to 10,000 by the end of 2025 and to 21,000 by the end of 2026.
The number of shareholders of the company will increase by 500% by 2024, mainly composed of retail investors, some of whom purchased the shares through Japan's NISA tax-free investment plan to avoid Bitcoin's 55% capital gains tax. In addition, the company plans to transform Tokyo's only operating hotel into a "Bitcoin Hotel" for hosting cryptocurrency-related events.
Metaplanet CEO Simon Gerovich stressed that Japanese investors are seeking safe-haven assets due to the depreciation of the yen, and Bitcoin has become a preferred choice. However, analysts warned that the company may face greater financial risks if the price of Bitcoin falls sharply.
