Surge In Bitcoin Demand In Japan Drives Metaplanet’s Meteoric Stock Growth

The rise of Bitcoin in Japan is being fueled by the ripple effects of US President Donald Trump’s pro-cryptocurrency agenda, creating significant returns for investors in companies like Metaplanet Inc. The hotelier-turned-crypto-investor has seen its shares soar by an astonishing 4,800% over the past year, marking the highest gain among Japanese equities and positioning it as one of the top-performing stocks globally, according to Bloomberg data.

Bitcoin itself reached a record high of $109,241 on January 20, the day Trump was inaugurated for his second term. While the price has since dipped due to global instability stirred by his trade policies, the initial surge coincided with heightened demand for the digital currency in Japan, where Metaplanet operates.

Metaplanet, previously known as Red Planet Japan Inc., has been restructuring itself to mirror the success of Michael Saylor’s MicroStrategy Inc., a Virginia-based firm that transformed into a massive Bitcoin proxy after acquiring over $45 billion in the cryptocurrency. Simon Gerovich, Metaplanet’s CEO and a former Goldman Sachs equity derivatives trader, was inspired by Saylor’s approach, which he learned about through a podcast. After a pandemic-related slowdown forced Metaplanet to close all but one of its hotels in early 2024, Gerovich pivoted the company’s strategy to focus on Bitcoin.

Since the pivot, Metaplanet’s shareholder base has exploded, increasing by 500% in 2024, with nearly 50,000 retail investors now on board. Capital Group, which also invests in MicroStrategy, is among the company’s backers. However, a significant portion of shareholders are first-time crypto investors with little experience navigating volatile markets.

Rhiannon Ewart-White, a Japan equity analyst at Storm Research, expressed caution about Metaplanet’s reliance on a retail investor base highly exposed to Bitcoin’s fluctuations. “They need to ensure that shareholders fully understand their strategy,” she said.

Despite six years of losses, Metaplanet reported an operating profit of ¥350 million ($2.3 million) for the year ending December 2024, a result that is expected to further boost the company’s stock.

Gerovich, who attended Trump’s inauguration in Washington, attributed the surge in Bitcoin demand in Japan to a more favorable regulatory environment in the US. He highlighted the excitement around potential changes in US policy as a driving force for increased interest in cryptocurrency.

Metaplanet isn’t the only company looking to replicate MicroStrategy’s success in Japan. Software developer Remixpoint Inc. also announced plans to purchase ¥1.2 billion worth of Bitcoin last September, and its stock has risen over 300% since.

A significant number of Metaplanet’s retail investors purchased shares through Japan’s revamped Nippon Individual Savings Account (NISA) program, which offers tax-free investment opportunities. One such investor, 18-year-old Tokyo robotics student Getto Hagiya, bought Metaplanet shares as his first investment. Hagiya, drawn to Bitcoin by Trump’s crypto-friendly rhetoric, believes the cryptocurrency will become a crucial asset in the future.

“Bitcoin will be an indispensable asset in the future,” he said, adding that Metaplanet’s promise of free Bitcoin merchandise at shareholder meetings further encouraged his investment.

With capital gains taxes on direct Bitcoin purchases in Japan reaching up to 55%, investing in companies like Metaplanet through NISA provides a more affordable route for small-scale and first-time investors.

Gerovich, originally from Australia, also noted that the ongoing depreciation of the yen has made Japan an attractive market for Bitcoin, with many investors seeking a hedge against currency debasement.

As of January 28, Metaplanet held 1,762 Bitcoin, valued at approximately $172 million. The company plans to increase this holding to 10,000 Bitcoin by the end of 2025 and 21,000 by 2026. To fund these purchases, Metaplanet intends to issue 21 million shares through moving strike warrants.

In addition to its cryptocurrency strategy, Metaplanet plans to rebrand its only remaining hotel, the Royal Oak in Tokyo’s Gotanda district, as “The Bitcoin Hotel” later this year. The hotel will serve as a venue for Bitcoin-related seminars and events, further aligning the company with the growing cryptocurrency trend.

Despite the hotel’s modest profitability, Ewart-White of Storm Research warned that Metaplanet’s business could face significant challenges if Bitcoin’s value declines. “If the price of Bitcoin tanks, that’s going to be quite difficult for them,” she said.