The pro-crypto stance of US President Donald Trump is reverberating across global markets, particularly in Japan, where one company’s bold pivot to Bitcoin accumulation is generating extraordinary returns for its shareholders.
Shares of Metaplanet Inc. have skyrocketed roughly 4,800% over the past year, making it the top-performing Japanese equity and one of the best-performing stocks globally, according to data compiled by Bloomberg.
This surge mirrors Bitcoin’s own impressive rally, which reached a record high of $109,241 on January 20 as Trump was sworn in for his second term (though it has since given up some of those gains).
Emulating MicroStrategy: a Bitcoin-first strategy takes hold
Metaplanet is among a growing number of companies seeking to replicate the success of Michael Saylor’s Strategy, formerly known as MicroStrategy Inc., which has become a leveraged Bitcoin proxy and a dominant force in the crypto space after accumulating over $45 billion worth of the digital asset.
Simon Gerovich, Metaplanet’s CEO and a former Goldman Sachs equity derivatives trader, told Bloomberg he was inspired by Saylor’s strategy after hearing about it on a podcast.
In early 2024, Gerovich shifted Metaplanet, previously a hotel developer called Red Planet Japan Inc., to a “Bitcoin-first strategy” following a pandemic-induced slowdown that forced the closure of most of its hotels.
Retail investors fuel the rally: risks and rewards
Since adopting its Bitcoin-centric approach, Metaplanet’s shareholder base has expanded dramatically, growing by 500% in 2024 to reach almost 50,000, according to the company.
While institutional investors like Capital Group (which also invests in Strategy) hold stakes in the company, the majority of shareholders are retail investors, many with limited experience in the highly volatile crypto market.
Rhiannon Ewart-White, Japan equity analyst and managing director of UK-based Storm Research, cautioned that “Metaplanet has such high exposure to the volatile retail base.
They need to make sure shareholders understand exactly what their strategy is.”
Financial turnaround: from losses to profits
After six consecutive years of losses, Metaplanet reported ¥350 million ($2.3 million) in operating profit for the year ended December 2024 on Monday.
These results are likely to further boost Metaplanet’s stock, according to Ewart-White.
Gerovich, who attended Trump’s inauguration ceremony in Washington last month, told Bloomberg that “the excitement around a more Bitcoin-friendly regulatory environment” in the US has catapulted demand in Japan for the token.
Metaplanet isn’t the only Japanese company adopting a MicroStrategy-like strategy.
Software developer Remixpoint Inc., for example, announced plans to purchase ¥1.2 billion in Bitcoin last September and has seen its stock increase by over 300% since.
Tax incentives for Bitcoin exposure
Many of Metaplanet’s retail shareholders bought shares through the Nippon Individual Savings Account (NISA) program, which Japan’s government revamped in early 2024 to encourage long-term investments.
Getto Hagiya, an 18-year-old robotics student from Tokyo, invested in Metaplanet shares as his first investment through the tax-free program. He said he became interested in Bitcoin after Trump promoted crypto-friendly policies during his campaign.
“I believe Bitcoin will be an indispensable asset in the future,” Hagiya told Bloomberg.
He was also enticed to invest by Metaplanet’s offer of free Bitcoin merchandise at its shareholder meetings.
Capital gains on direct Bitcoin purchases are subject to taxes of up to 55% in Japan, making stock proxies like Metaplanet via NISA an attractive, cost-effective option for small-scale and first-time investors.
Yen depreciation fuels Bitcoin appeal
Gerovich believes that “ongoing yen depreciation” makes Japan a fertile ground for Bitcoin adoption, as investors seek “a hedge against monetary debasement.”
Aggressive Bitcoin Acquisition Plans
As of January 28, Metaplanet held 1,762 Bitcoin (currently worth about $172 million), according to a company presentation.
The firm plans to increase its holdings to 10,000 tokens by the end of 2025 and 21,000 by the end of 2026.
To finance these purchases, Metaplanet intends to issue 21 million shares via moving strike warrants.
The company plans to rebrand its sole remaining hotel, the Royal Oak in Tokyo’s Gotanda area, as “The Bitcoin Hotel” later this year, aiming to host Bitcoin-related seminars and events.
While Metaplanet has a “profitable, albeit very small” hotel business backing its Bitcoin buying, according to Storm Research’s Ewart-White, she cautioned that “if the price of Bitcoin tanks, that’s going to be quite difficult for them.”
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