Metaplanet's Share Rocket: Bitcoin Strategy Fuels 158% Surge in a Week
Summary:
Metaplanet, a Japanese investment firm, has seen a 158% surge in share prices within a week, following MicroStrategy’s Bitcoin investment strategy. Currently priced at 93 yen, the firm is close to breaching a $1 billion market cap. After disclosing its Bitcoin investment strategy on April 8, the firm has obtained 117.7 Bitcoin, equaling $7.2 million. Now, the firm plans to leverage unique capital market instruments to strategically increase its Bitcoin reserves.
Metaplanet, an investment firm from Japan, has watched its stocks soar by 158% within a week, mirroring MicroStrategy's Bitcoin (BTC) strategy, and marking the largest advancement among all Japanese stocks. Presently priced at 93 Japanese yen, Metaplanet's stocks have inflated by 127% over the last two days. Such unprecedented growth led the Tokyo Stock Exchange to pause trading at least twice in the past week. With a swiftly approaching $1 billion market cap ($940 million or 14.8 billion Japanese yen at today's rate), Metaplanet exemplifies growth potential.
Citing Tokyo Stock Exchange regulations, stocks priced below 100 Japanese yen can solely increase daily by a maximum of 30 Japanese yen—an increase that Metaplanet has surpassed two days consecutively. Dylan LeClair, Metaplanet's Director of Bitcoin Strategy, highlighted this performance, pointing out Metaplanet's position as the "best-performing stock in Japan" for two days sequentially.
Since its Bitcoin investment strategy was disclosed on April 8, Metaplanet has obtained 117.7 Bitcoin, equating to $7.2 million. The outcome: a 389% rise in stock. Like MicroStrategy––the principal corporate Bitcoin shareholder––Metaplanet plans to implement a versatile selection of capital market tools to strategically grow its Bitcoin reserves, as mentioned in their May 13 statement.
Metaplanet's motive for adapting its Bitcoin investment strategy is, according to the firm, to balance Japan's escalating debt issues and rapidly depreciating yen, noting it as "a direct response to upheld economic pressures in Japan, notably high government debt levels, extended periods of negative real interest rates and the ensuing weak yen."
Metaplanet emphasizes that Japan's debt-to-GDP ratio, at 261%, significantly surpasses other developed nations. Moreover, since 2021 began, the Japanese yen has depreciated over 34% compared to the United States dollar. In contrast, Bitcoin has risen nearly 190% against the yen during the past 12 months.
For now, Metaplanet is only accessible on the Tokyo Stock Exchange, barring U.S. investors from participation. However, Arnab Naskar, co-founder of security token platform STOKR, recently indicated plans to tokenise Metaplanet stocks on Bitcoin layer-2 network Liquid, aligning with the technique used to tokenise MicroStrategy stocks.
Published At
5/23/2024 4:38:47 AM
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