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Market Analysis
Firm Seeks to be “Asia’s First MicroStrategy”; its Marketcap is 0.3% of MSTR’s BTC Profits
Metaplanet has positioned itself as "Asia's First Microstrategy."
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Metaplanet Inc, formerly known as Red Planet Japan, a budget hotel operator that then pivoted to become a Web3 developer, has announced a move that allows Japanese investors to gain exposure to Bitcoin without facing the high tax on unrealized gains, which can reach up to 55%.
The company has positioned itself as “Asia’s First Microstrategy,” comparing it to MicroStrategy’s (NASDAQ: MSTR) significant Bitcoin holdings and its strategy to incorporate Bitcoin as a core treasury asset.
Metaplanet Aims to Be “Asia’s First MicroStrategy”
The partnership includes Sora Ventures, Morgan Creek Capital’s Mark Yusko, and others. The aim is to offer exposure to bitcoin through a publicly traded company on the Tokyo Stock Exchange, mitigating regulatory risks. This move is seen as a significant step towards adopting digital assets within Japan.
As part of its unwavering financial strategy shift towards digital assets, Metaplanet has committed an initial JPY 1 billion to Bitcoin.
The company’s strategic move is to minimize exposure to the Japanese yen, citing the long-term low-interest-rate environment in Japan that has weakened the yen’s global position. This decision aims to pioneer the digital finance era and position Metaplanet as a leader in adopting digital assets within Japan.
Metaplanet’s Total Marketcap is Less than 0.3% of MicroStrategy’s Bitcoin Profits
Following the announcement, Metaplanet’s stock price dramatically increased by 89.47%, closing at 36.00 JPY from a previous close of 19.00 JPY.
However, critics have raised concerns about Metaplanet’s move, with some seeing it as a “major grift” due to the company’s past focus on various digital assets beyond Bitcoin, contrasting with MicroStrategy’s more focused Bitcoin strategy.
Skeptics also point out the relatively small scale of Metaplanet’s bitcoin investment (approx. $6 million or 91 bitcoin) compared to MicroStrategy’s holdings, suggesting it might offer a different level of exposure or stability.
Metaplanet’s market cap of ~$14.3 million (2.18 billion yen) is less than 0.03% of MicroStrategy’s profits on its Bitcoin holdings (214,245 Bitcoins), worth approximately $14 billion at current rates with a lifetime profit of $7,546,043,215.42 (95%) at the time of writing.
Despite the criticisms, supporters argue that Metaplanet’s adoption of MicroStrategy’s playbook is a wise decision, indicating a split in the community’s perception of Metaplanet’s strategy.
Do you think Metaplanet offers a unique investing opportunity for Japanese investors? Let us know in the comments below.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
Tim Fries
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
