Metaplanet, a web3 infrastructure provider, saw a significant increase in its Tokyo-listed stock by nearly 90% after adding $6.56 million worth of Bitcoin to its balance sheet. The company’s decision to incorporate Bitcoin into its treasury assets in collaboration with Sora Ventures, Mark Yusko from Morgan Creek Capital, and other partners played a key role in this surge. Previously operating as a budget hotel operator under the name Red Planet, Metaplanet has transitioned into a Web3 software developer. The move to add Bitcoin was mainly to minimize exposure to the Japanese yen, which has been impacted by Japan’s low-interest-rate environment.
In response to the vulnerability of the yen and the potential for inflation, Metaplanet decided to use Bitcoin as a hedge against these risks. This strategic move is similar to the approach taken by MicroStrategy, a software developer based in the United States, which has also been actively accumulating Bitcoin as part of its corporate treasury holdings. MicroStrategy’s stock price has closely followed the fluctuations in Bitcoin’s value, showcasing investor sentiment towards the cryptocurrency market. MicroStrategy currently holds the largest corporate bitcoin reserves, with over 214,000 bitcoins valued at over $15 billion.
Jason Fang, the managing partner and co-founder of Sora Ventures, highlighted the significance of the partnership with Metaplanet in providing Japanese investors with exposure to cryptocurrencies through a publicly traded company. This alternative investment avenue eliminates the need for investors to hold assets directly and helps mitigate the high tax imposed on unrealized crypto gains in Japan. Major corporate investors like MicroStrategy have seen substantial profits from their Bitcoin holdings, with MicroStrategy’s position now valued at over $12.57 billion based on current market prices.
Despite the recent dip in Bitcoin’s price to around $69,000, down by more than 3% over the past day, corporate Bitcoin holders like Metaplanet and MicroStrategy have seen significant gains. At its all-time high of $73,750 registered on March 14, Bitcoin is only 5% away from reclaiming that peak. The rise of corporate Bitcoin holdings signals a growing trend of companies looking to diversify their treasury assets with digital assets like Bitcoin. As the cryptocurrency market continues to evolve, more companies may follow in the footsteps of Metaplanet and MicroStrategy in utilizing Bitcoin as a strategic asset for long-term capital appreciation and hedging against inflation risks.
