Surge in Bitcoin Demand in Japan Fueled by Pro-Crypto Agenda
US President Donald Trump's embrace of cryptocurrency has triggered a surge in Bitcoin demand in Japan. Metaplanet Inc., a former hotel developer, has experienced a meteoric rise in its stock value, driven by its pivot to Bitcoin investment.
Metaplanet's Transformation
Simon Gerovich, Metaplanet's CEO, was inspired by Michael Saylor's strategy at MicroStrategy, a company that has amassed a significant Bitcoin portfolio. Metaplanet shifted to a "Bitcoin-first strategy" in 2024, closing all but one of its hotels amidst the pandemic slowdown.
The company's shareholders have grown to nearly 50,000, with retail investors forming a majority. However, Metaplanet has been criticized for its high exposure to volatile crypto assets.
Favorable Regulatory Environment
Trump's pro-crypto stance has contributed to increased demand for Bitcoin in Japan, according to Gerovich. He believes the new regulatory environment is driving this surge.
Other companies in Japan have followed Metaplanet's lead. Remixpoint Inc., a software developer, announced its intention to purchase Bitcoin in 2024 and has seen substantial stock growth.
Retail Investors Flock to NISA
Many retail investors have purchased Metaplanet shares through the Nippon Individual Savings Account (NISA) program, which offers tax benefits for long-term savings. Bitcoin's tax-friendliness under NISA has made it an attractive option.
Yen Depreciation a Factor
Gerovich believes that the depreciating yen is also making Japan a fertile ground for Bitcoin adoption, as investors seek hedges against monetary debasement.
Metaplanet's Plans
Metaplanet aims to hold 10,000 Bitcoin by 2025 and 21,000 by 2026. The company plans to issue shares and rebrand its remaining hotel as "The Bitcoin Hotel" for Bitcoin-related events.
While Metaplanet has a small but profitable hotel business, analysts warn that a decline in Bitcoin's price could pose a challenge.