Metaplanet plans to raise approximately 116 billion yen to purchase Bitcoin——
116 billion yen is roughly equivalent to 53.94 billion RMB and 7.45 billion USD.
As of December 2024, Metaplanet holds over 1,000 Bitcoins, and previous reports indicated that Metaplanet plans to increase its Bitcoin holdings to 10,000 BTC by 2025.
Who is Metaplanet?
In a nutshell: the Japanese version of MicroStrategy ——
Metaplanet is a publicly listed company in Japan that operates on a hotel-based business model. It began adopting Bitcoin as its primary financial reserve asset last year, similar to MicroStrategy in the United States.
The company's official website clearly states that its strategic focus has shifted to Bitcoin, aiming to leverage Bitcoin's scarcity and anti-inflation characteristics to hedge against the depreciation of the yen and macroeconomic risks, while providing compliant Bitcoin investment channels for Japanese investors (as Japan has yet to approve Bitcoin ETFs).
This means they are using excess cash flow and financial management strategies to increase their Bitcoin holdings. Their goal is to enhance the company's asset value through this strategy while also promoting the adoption of Bitcoin in Japan.
The company plans to increase its Bitcoin holdings to 10,000 BTC by 2025, demonstrating their confidence in Bitcoin as a long-term investment tool.
In 2024, Metaplanet significantly boosted its stock price due to its Bitcoin strategy, achieving an annual return of approximately 2,600%, performing exceptionally well among Japanese listed companies. They also have high liquidity in the Japanese stock market, ranking in the top 1% for trading volume among Japanese listed companies.
However, there are differences in the business backgrounds, financing methods, and market positions of Metaplanet and MicroStrategy. For investors, Metaplanet's high-leverage strategy amplifies both returns and risks:
1) Similarities——
Leveraged Bitcoin investment: Metaplanet emulates MicroStrategy by financing Bitcoin purchases through bond issuance or loans. For example, in June 2024, they issued guaranteed bonds with an annual interest rate of 0.5% to raise 1 billion yen (approximately 7 million USD) to increase their Bitcoin holdings by 1,012; in December of the same year, they raised 4.5 billion yen (approximately 30 million USD) through zero-interest bonds to further increase their Bitcoin holdings by 1,215.
Strong correlation between stock price and Bitcoin price: Metaplanet's stock price has risen 2,450% since January 2024, similar to MicroStrategy, with its stock price highly dependent on Bitcoin's market performance.
Long-term holding strategy: CEO Simon Gelovich has explicitly stated that the company will not sell Bitcoin due to short-term fluctuations and plans to hold it long-term to maximize returns.
2) Differences and distinctions——
Different business foundations: MicroStrategy was originally an IT company, while Metaplanet has transitioned from the hotel industry and retains some real estate assets as collateral for bonds (such as land and buildings).
Differences in financing costs: Metaplanet uses zero-interest bonds, resulting in lower financing costs, but it must rely on Bitcoin appreciation to cover the principal at maturity; MicroStrategy, on the other hand, uses a mix of equity and debt financing, leading to a more complex cost structure.
Holding scale: As of December 2024, Metaplanet holds over 1,000 Bitcoins (worth approximately 330 million USD), while MicroStrategy holds over 220,000 Bitcoins (worth approximately 15 billion USD), showing a significant scale difference. However, the company plans to increase its Bitcoin holdings to 10,000 BTC by 2025.
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