Tech
Japanese investment firm sees huge leap after embracing Bitcoin
Lately, the spotlight has been on Japan, which is slowly adopting Bitcoin and other digital assets. A few days ago, the share price of Metaplanet (Japan MicroStrategy) increased significantly, rising more than 150% in just one week.
Surprisingly, this incredible surge caused trading to halt for two days. As a result of the rally, Metaplanet is now the biggest gainer of all Japanese stocks.
Metaplanet has captured the attention of investors with its ambitious strategy to accumulate Bitcoin.
This act mimics MicroStrategy’s approach, that’s why some call the company “Japanese MicroStrategy”. MicroStrategy is known as the largest Bitcoin holding company in the world.
On the other hand, Metaplanet has begun the journey to increase the amount of Bitcoin it has held over time. Metaplanet announced a bold initiative on Monday to facilitate its Bitcoin accumulation strategy. The company plans to increase the number of authorized shares by 300%.
This move mirrors a tactic previously used by MicroStrategy on multiple occasions. By issuing new shares and generating capital through these sales, Metaplanet aims to use the proceeds to purchase additional Bitcoin.
This strategy turns Metaplanet into a Bitcoin ETF for investors in Japan but without the usual fees. According to his Official siteplans to build a “Web2 and Web3” environment to connect Japan with the rest of the world.
Interestingly, the company’s share price has skyrocketed from just 45 Japanese yen on Monday to 93 yen, a notable increase of 127%. Furthermore, Metaplanet’s market capitalization is reaching $1 billion.
Metaplanet challenged the rules of the Tokyo Stock Exchange for two consecutive days. These rules typically limit daily price increases for stocks trading below 100 yen to a maximum of 30 yen. However, Metaplanet’s share price surge surpassed this threshold on both days.
From April 8th, when Metaplanet shared his plan to invest in Bitcoin, he quickly raised 117.7 BTC. Using its current price of 67,384the BTC in his possession are worth 7.9 million dollars.
Just as was the case with MicroStrategy in August 2020, Metaplanet’s stock prices increased by an impressive 389% following the news. On May 13, Metaplanet said it plans to use several financial tools to acquire even more Bitcoin, similar to what MicroStrategy does.
The company claimed is entering the crypto sector due to Japan’s significant debt problem and the rapid loss of value of the yen. Currently, Metaplanet shares are only available on the Tokyo Stock Exchange, which means American investors cannot easily purchase them.
However, the company plans to turn its shares into digital tokens so that more people can invest. STOKR’s Arnab Naskar wants to turn Metaplanet shares into tokens on the Bitcoin network. Notably, this is the same company that made a similar token for MicroStrategy.
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