Key Takeaways
- Metaplanet's stock surged 158% in the past week, leading all Japanese stocks.
- The Tokyo Stock Exchange halted Metaplanet's trading twice due to rapid price increases.
- Metaplanet has adopted a Bitcoin investment strategy to hedge against Japan’s economic challenges.
Metaplanet, a Japanese investment firm inspired by MicroStrategy’s Bitcoin strategy, has seen its stock price skyrocket by 158% over the past week, making it the top performer among all Japanese stocks.
The company’s share price surged 127% in just two days, reaching 93 Japanese yen.
This dramatic increase led to the Tokyo Stock Exchange (TSE) implementing circuit breaker trading halts twice last week to manage the volatility.
389% rise since April 8
Currently valued at approximately 14.8 billion yen ($940 million), Metaplanet’s stock has risen 389% since the firm announced its Bitcoin investment strategy on April 8.
The company has accumulated 117.7 Bitcoin, worth about $7.2 million. Metaplanet aims to use a variety of capital market instruments to increase its Bitcoin reserves, similar to MicroStrategy, which is the largest corporate Bitcoin holder.
Dylan LeClair, Metaplanet’s Director of Bitcoin Strategy, noted that the firm has been the best-performing stock in Japan for two consecutive days.
The strategy behind this move is to hedge against Japan’s economic challenges, including its substantial debt burden and the depreciating yen.
Economic issues
Metaplanet cited Japan’s debt-to-GDP ratio of 261% and a 34% drop in the yen against the U.S. dollar since early 2021 as key reasons for its Bitcoin investment.
Bitcoin has appreciated nearly 190% against the yen over the past year.
Metaplanet’s shares are currently traded only on the Tokyo Stock Exchange, limiting access for U.S. investors.
