{"id":12396,"date":"2024-04-09T16:33:31","date_gmt":"2024-04-09T13:33:31","guid":{"rendered":"https:\/\/forklog.com\/en\/metaplanet-shares-soar-90-following-bitcoin-reserve-acquisition\/"},"modified":"2024-04-09T16:33:31","modified_gmt":"2024-04-09T13:33:31","slug":"metaplanet-shares-soar-90-following-bitcoin-reserve-acquisition","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/metaplanet-shares-soar-90-following-bitcoin-reserve-acquisition\/","title":{"rendered":"Metaplanet Shares Soar 90% Following Bitcoin Reserve Acquisition"},"content":{"rendered":"<p>The shares of Japanese public company Metaplanet surged nearly 90% following the announcement of a new strategy involving the acquisition of bitcoins worth 1 billion yen (~$6.6 million) for its balance sheet.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Today, we&#8217;re thrilled to announce a groundbreaking shift in our financial strategy, as we embrace Bitcoin as the core treasury asset of the Company going forward by committing an initial JPY 1 billion. This strategic pivot is not just about embracing digital assets but also about\u2026 <a href=\"https:\/\/t.co\/OASxj9IBPG\">pic.twitter.com\/OASxj9IBPG<\/a><\/p>\n<p>\u2014 Metaplanet Inc. (@Metaplanet_JP) <a href=\"https:\/\/twitter.com\/Metaplanet_JP\/status\/1777243921867014574?ref_src=twsrc%5Etfw\">April 8, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The firm described this as the first step in transitioning its treasury to the leading cryptocurrency.<\/p>\n<p>According to the statement, the transaction was facilitated by Sora Ventures, Mark Yusko of Morgan Creek Capital, and other industry representatives.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe shift to Bitcoin marks a significant milestone in our mission to lead in the era of digital finance and positions Metaplanet as a pioneer in cryptocurrency adoption in Japan,\u201d the statement said.<\/p>\n<\/blockquote>\n<p>In a <a href=\"https:\/\/contents.xj-storage.jp\/xcontents\/33500\/aedbb541\/9224\/47c0\/97df\/f6e23d530bf7\/140120240408567375.pdf\">letter<\/a> to investors, the company explained its decision to convert capital into cryptocurrency due to the persistent weakening of the yen as a result of negative interest rate policies. Bitcoin, despite its volatility, has consistently grown over the years. The firm expects digital gold to continue outperforming the Japanese currency.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe company&#8217;s decision to include Bitcoin in its treasury assets is driven by a multifaceted understanding of its potential as a hedge against inflation, a tool for macroeconomic resilience, and a foundation for long-term capital appreciation,\u201d Metaplanet emphasized.<\/p>\n<\/blockquote>\n<p>It is anticipated that the company&#8217;s investors will be able to indirectly own bitcoins, reducing their portfolio&#8217;s exposure to the yen and diversifying it.<\/p>\n<p>Metaplanet&#8217;s closing stock price reached 36 yen, up from 19 yen at the start of the trading session, marking an 89.47% increase.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/3350-Stock-Price-Metaplanet-Inc.-Stock-Quote-Japan-Tokyo-MarketWatch-Google-Chrome.webp\" alt=\"3350-Stock-Price-Metaplanet-Inc.-Stock-Quote-Japan-Tokyo-MarketWatch-Google-Chrome\" class=\"wp-image-230201\"\/><figcaption class=\"wp-element-caption\">Data: <a href=\"https:\/\/www.marketwatch.com\/investing\/stock\/3350?countrycode=jp&#038;mod=search_symbol\">MarketWatch<\/a>.<\/figcaption><\/figure>\n<p>According to the company&#8217;s website, it operates globally in the fields of Web3 consulting, real estate, and investments. The firm began its business under the name Red Planet as a budget hotel network operator.<\/p>\n<p>Users <a href=\"https:\/\/twitter.com\/AsherHopp\/status\/1777381595764113874\">noted<\/a> that Metaplanet&#8217;s market capitalization is ~$12 million, and it was unprofitable by the end of 2023. Some believe it is incorrect to compare the firm with MicroStrategy.<\/p>\n<p>Michael Saylor&#8217;s company was the first publicly traded firm to start converting reserves into Bitcoin in August 2020. After purchasing 9,245 BTC for $623 million in March 2024, its cryptocurrency holdings <a href=\"https:\/\/forklog.com\/en\/news\/microstrategys-bitcoin-holdings-surpass-1-of-cryptocurrencys-total-supply\">reached 214,246 BTC<\/a> \u2014 over 1% of the total supply.<\/p>\n<p>According to <a href=\"https:\/\/bitcointreasuries.net\/\">BitcoinTreasuries<\/a>, MicroStrategy&#8217;s market capitalization is $25.7 billion, with Bitcoin reserves accounting for ~59% of that figure.<\/p>\n<p>Regarding Metaplanet&#8217;s new strategy, a commentator under the nickname Pledditor warned:<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThis looks like a major grift. It&#8217;s a shitcoin VC company, so just be warned unlike MSTR, you are exposed to the entirety of their fund which includes shitcoins.\u201d<\/p>\n<\/blockquote>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">This looks like a major grift.<\/p>\n<p>It&#8217;s a shitcoin VC company, so just be warned unlike MSTR, you are exposed to the entirety of their fund which includes shitcoins<\/p>\n<p>\u2014 Pledditor (@Pledditor) <a href=\"https:\/\/twitter.com\/Pledditor\/status\/1777369771417170103?ref_src=twsrc%5Etfw\">April 8, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Back in late March, MicroStrategy&#8217;s stock prices <a href=\"https:\/\/forklog.com\/en\/news\/microstrategy-shares-reach-24-year-high\">hit<\/a> a 24-year high amid <a href=\"https:\/\/forklog.com\/en\/news\/bitcoin-surges-past-71000-amid-rising-investment-demand\">Bitcoin&#8217;s price recovery<\/a>.<\/p>\n<p>Analysts at Kerrisdale Capital <a href=\"https:\/\/forklog.com\/en\/news\/kerrisdale-capital-labels-microstrategy-shares-as-overvalued\">labeled<\/a> the shares as overvalued.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The shares of Japanese public company Metaplanet surged nearly 90% following the announcement of a new strategy involving the acquisition of bitcoins worth 1 billion yen (~$6.6 million) for its balance sheet. Today, we&#8217;re thrilled to announce a groundbreaking shift in our financial strategy, as we embrace Bitcoin as the core treasury asset of the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":12395,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[18,135,1211],"class_list":["post-12396","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin","tag-japan","tag-stock-market"],"aioseo_notices":[],"amp_enabled":true,"views":"25","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/12396","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=12396"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/12396\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/12395"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=12396"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=12396"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=12396"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}