Metaplanet witnessed its share price soar by nearly 90% in just one day after announcing its decision to invest in bitcoin.
Japanese firm Metaplanet has announced its decision to allocate a staggering 1 billion yen ($659 million) in Bitcoin to its corporate treasury. The company has witnessed its share price soar by approximately 90% in just one day.
Metaplanet Partners with Sora Ventures and others.
Various partners and investors, including Sora Ventures, UTXO Management, and Mark Yusko of Morgan Creek Capital, have supported the decision.
“This strategic pivot is not just about embracing digital assets but also about pioneering a future where finance meets innovation at its core,” Metaplanet stated on X platform.
Interestingly, Metaplanet’s decision marks one of the most significant Bitcoin investments by a non-crypto-centric firm, which shows a major shift in corporate strategies towards digital assets.
Metaplanet, previously known as Red Planet, has drifted from its interest in hospitality to becoming a Web3 Innovator.
In addition, the firm mentioned that its transition to Bitcoin is a significant milestone in its mission to lead the digital finance era and positions Metaplanet as a pioneer in adopting digital assets in Japan.
Jason Fang, the founder of Sora Ventures, took to the X platform to share news about the BTC treasury strategy.
“Excited to announce that [Sora Ventures] is working with [Metaplanet], a listed company on the Tokyo Stock Exchange to create Asia’s first Microstrategy,” Fang said adding that “The product will enable the Japanese to gain exposure to Bitcoin without paying an unrealized gains tax that could go as high as 55%. It will also enable anyone with an account to Tokyo Stock Exchange to gain exposure to bitcoin without any regulatory risks. I will be joining the board of the listed company.”
Stock Value Against the U.S. Dollar.
Furthermore, after Metaplanet revealed its bitcoin (BTC) strategy, its stock value surged by 89.47% against the U.S. dollar. The Japanese enterprise’s market valuation now amounts to 2.18 billion yen ($14.3 million), placing it on the standards of other major players such as MicroStrategy, Mogo Inc., and Tesla.
Speaking on the announcement, some analysts have tagged the move as a “savvy strategic decision,” which may inspire other traditional companies to emulate it.