Peter Smith
Metaplanet (3350.T) has skyrocketed 4,800% in the past year as the company shifts to a Bitcoin (BTC) investment strategy. Fueled by increasing crypto adoption and favorable U.S. policies, the stock continues to attract retail investors.
Metaplanet Becomes Japan’s Bitcoin Proxy
Metaplanet Inc. (3350.T, MTPLF), formerly a hotel developer, has emerged as Japan’s answer to MicroStrategy (MSTR), with its stock soaring 4,800% over the last 12 months. The company's pivot to a "Bitcoin-first strategy" has placed it among the best-performing equities in Japan and globally. This rally aligns with Bitcoin’s (BTC-USD) surge to a record high of $109,241 on January 20, following U.S. President Donald Trump’s pro-crypto stance. Although BTC has retraced slightly due to global trade concerns, Metaplanet’s momentum remains strong.
Bitcoin (BTC) Fuels Metaplanet's Record-Breaking Growth
Led by former Goldman Sachs (GS) trader Simon Gerovich, Metaplanet transitioned from hotel operations to cryptocurrency investment in early 2024. After suffering significant losses during the pandemic, the company adopted a Bitcoin-focused strategy, drawing inspiration from Michael Saylor’s MicroStrategy approach. This shift has paid off, as Metaplanet reported a profit of ¥350 million ($2.3 million) in 2024, its first positive earnings in six years.
Investor interest in Metaplanet has surged, with its shareholder base growing 500% in 2024 to nearly 50,000. Major stakeholders include Capital Group, which also holds MicroStrategy shares, but most investors are retail traders new to crypto-related stocks.
Retail Investors and Japan’s Crypto Tax Policies Favor Metaplanet (3350.T)
Japan’s revamped Nippon Individual Savings Account (NISA) program, which encourages long-term investments, further supports Metaplanet's growth. Many retail investors, like 18-year-old Tokyo student Getto Hagiya, view Metaplanet as a tax-efficient alternative to direct Bitcoin purchases, which are taxed up to 55% in Japan. Hagiya, influenced by Trump’s pro-crypto policies, made his first investment in Metaplanet, seeing Bitcoin as an essential future asset.
Gerovich has emphasized that the ongoing yen depreciation makes Bitcoin an attractive hedge against monetary instability. Metaplanet currently holds 1,762 BTC (worth approximately $172 million) and plans to expand its holdings to 10,000 BTC by the end of 2025 and 21,000 BTC by 2026. The company intends to issue 21 million shares through moving strike warrants to finance these purchases.
Metaplanet’s Future Plans: The Bitcoin Hotel and Beyond
As part of its crypto-centric branding, Metaplanet will rebrand its last remaining hotel in Tokyo’s Gotanda district as “The Bitcoin Hotel” in 2025. The establishment will host Bitcoin-related seminars and networking events to strengthen its presence in the crypto space.
Despite its ambitious plans, analysts warn of potential risks. "Metaplanet’s dependence on Bitcoin price movements makes it highly volatile," said Rhiannon Ewart-White, an equity analyst at Storm Research. While the company remains profitable through its hotel operations, its heavy reliance on BTC means a downturn in crypto markets could significantly impact its financial stability.
Conclusion
Metaplanet’s strategic shift has propelled it into the spotlight as Japan’s leading Bitcoin proxy stock. The company is poised for further growth with substantial BTC holdings, strong retail investor interest, and a growing crypto-friendly regulatory environment. However, its reliance on Bitcoin price movements remains a double-edged sword, making it a high-risk, high-reward investment.
Peter Smith
