Bitcoin Enthusiast’s Investments Surge by 4,000% in Japan amid Cryptocurrency Boom
ne of the many organizations worldwide attempting to replicate the accomplishments of Michael Saylor’s Strategy, previously named MicroStrategy. This company, based in Tysons Corner, Virginia, has transformed into a highly-leveraged Bitcoin behemoth by amassing over US$45 billion of the digital token.
Simon Gerovich, the CEO of Metaplanet and a former equity derivatives trader at Goldman Sachs, transitioned the company’s focus to a “Bitcoin-first strategy” in early 2024 after operating as a hotel developer under the name Red Planet Japan Inc since 2013. The decision to pivot towards Bitcoin was influenced by the success story of Saylor’s Strategy heard on a podcast. The move came following a pandemic-induced slowdown that led to the closure of all but one of Metaplanet’s hotels.
As a result of this shift, the company has seen significant growth, with its shareholder base expanding to nearly 50,000 during 2024, a 500% increase. While institutional investor Capital Group is among the shareholders, the majority are retail investors, many of whom are inexperienced in dealing with the volatility of digital assets like cryptocurrencies.
Metaplanet’s surge in popularity among retail investors has caught the attention of experts like Rhiannon Ewart-White, a Japan equity analyst from Storm Research. She highlights the importance of ensuring that shareholders fully comprehend the company’s strategy, especially given the high exposure to retail investors with limited experience in volatile crypto assets.
Although Metaplanet has reported losses for six consecutive years, the company anticipates turning a profit in its upcoming fourth-quarter earnings release. This positive outlook is expected to further boost the company’s stock performance, according to Ewart-White.
Gerovich attributes the increased demand for Bitcoin in Japan, at least partially, to the more crypto-friendly regulatory environment promoted by Trump during his second term inauguration. He sees Japan as an attractive market for Bitcoin due to ongoing yen depreciation, with many investors seeking a safe haven against currency devaluation.
Furthermore, Metaplanet has plans to expand its Bitcoin holdings significantly, aiming to own 10,000 tokens by the end of 2025 and 21,000 by the following year. The company intends to issue 21 million shares through moving strike warrants to fund these acquisitions. Additionally, it plans to rebrand its sole remaining hotel, The Royal Oak in Tokyo, as “The Bitcoin Hotel,” focusing on hosting Bitcoin-related events and seminars.
Metaplanet’s success story as a Bitcoin hoarder has inspired similar ventures in Japan, such as software developer Remixpoint, which announced a plan to acquire 1.2 billion USD in Bitcoin and has seen its stock appreciate by over 300% since the announcement. The popularity of Metaplanet’s stock among retail investors can be partly attributed to Japan’s Nippon Individual Savings Account (Nisa) program, which enables citizens to invest in stocks like Metaplanet tax-free, providing a convenient option for small-scale and novice buyers eager to capitalize on the crypto craze.
