Metaplanet Surges on Bitcoin Surge Fueled by Pro-Crypto US Agenda

Tokyo, Japan - Shares of Metaplanet Inc. (TSE: METP) have soared 4,800% over the past year, making it the top-performing stock on the Japanese equity market and one of the highest globally. This meteoric rise is primarily attributed to the company's shift to a "Bitcoin-first strategy" amidst the surge in Bitcoin demand in Japan.

Metaplanet's CEO, Simon Gerovich, a former Goldman Sachs trader, was inspired by the success of Michael Saylor's Strategy, which had transformed into a Bitcoin proxy by accumulating over $45 billion worth of the cryptocurrency.

In early 2024, Metaplanet pivoted from its previous business as a hotel developer to focus on Bitcoin investments. This move has resonated with investors, with its shareholder base growing by 500% in 2024 to approximately 50,000.

The company's recent financial results have also boosted its stock price. Metaplanet reported ¥350 million ($2.3 million) in operating profit for the year ended December 2024, ending six consecutive years of losses.

Gerovich believes that the "excitement around a more Bitcoin-friendly regulatory environment" in the US, particularly under President Trump's pro-crypto agenda, has fueled demand for Bitcoin in Japan.

Metaplanet is not the only Japanese company following in the footsteps of MicroStrategy. Remixpoint Inc., a software developer, also announced plans to purchase ¥1.2 billion in Bitcoin last year, leading to a 300% increase in its stock value.

Many Metaplanet shareholders are retail investors, including young first-time buyers who have invested through the Nippon Individual Savings Account (NISA) program. The program's tax benefits make investing in Bitcoin proxies like Metaplanet an attractive option for these investors.

Metaplanet's intention to increase its Bitcoin holdings to 10,000 by the end of 2025 and 21,000 by the end of 2026 has further fueled investor confidence. The company plans to fund these purchases through issuing 21 million shares via moving strike warrants.

While Metaplanet's Bitcoin investments have generated significant returns, analysts caution that the company's small hotel business and dependence on Bitcoin's price fluctuations pose potential risks.