The global cryptocurrency market is abuzz with excitement as the ripple effects of U.S. President Donald Trump’s pro-crypto agenda continue to reshape the financial landscape. In Japan, this shift has sparked a dramatic surge in Bitcoin demand, with one unlikely beneficiary being Metaplanet Inc., a former hotel developer turned Bitcoin behemoth. The company’s shares have skyrocketed by more than 4,000% over the past year, making it the top-performing Japanese equity and one of the highest-growth stocks worldwide during that period, according to data compiled by Bloomberg. This stunning ascent underscores the growing allure of Bitcoin as a speculative asset, particularly in Japan, where investors are eagerly embracing the digital currency as a hedge against economic uncertainty and currency depreciation.
At the heart of this story is Metaplanet’s ambitious pivot to a “Bitcoin-first strategy.” Formerly known as Red Planet Japan Inc., the company had struggled for years as a hotel developer, posting six consecutive annual losses. However, the COVID-19 pandemic delivered a crippling blow to the hospitality industry, forcing Metaplanet to shutter all but one of its hotels. It was against this backdrop of adversity that CEO Simon Gerovich, a former Goldman Sachs equity derivatives trader, stumbled upon an idea that would transform the company’s fortunes. Inspired by Michael Saylor, the CEO of MicroStrategy (now known as Strategy), who pioneered the concept of using Bitcoin as a treasury reserve asset, Gerovich decided to steer Metaplanet in a bold new direction. By early 2024, the company had officially embraced its “Bitcoin-first strategy,” beginning a journey that would see it amass a significant Bitcoin stash and rebrand itself as a proxy for cryptocurrency investors.
Metaplanet’s transformation has not gone unnoticed. The company’s shareholder base has grown exponentially, swelling from just a few thousand to nearly 50,000 investors in 2024 alone—a remarkable 500% increase. While institutional investors like Capital Group, which also backs Saylor’s Strategy, have taken notice of Metaplanet’s potential, the majority of its shareholders are retail investors. Many of these individuals are first-time investors, drawn to the promise of high returns in an era of low-yield traditional assets. Among them is 18-year-old robotics student Getto Hagiya, who purchased Metaplanet shares through Japan’s Nippon Individual Savings Account (NISA) program. Hagiya, like many of his peers, was inspired by Trump’s vocal support for cryptocurrency during his campaign and sees Bitcoin as an indispensable asset for the future. He was further enticed by Metaplanet’s unique perk of offering free Bitcoin-themed merchandise at shareholder meetings—a small but symbolic gesture that underscores the company’s commitment to building a community around its Bitcoin-focused mission.
The NISA program has played a pivotal role in fueling Metaplanet’s success. Launched by the Japanese government in early 2024, the program aims to encourage citizens to invest their savings for long-term growth and retirement by offering tax incentives. For many small-scale and first-time investors, purchasing shares in companies like Metaplanet through NISA has become an attractive alternative to buying Bitcoin directly, which is subject to steep capital gains taxes of up to 55% in Japan. By investing in a Bitcoin proxy like Metaplanet, these individuals can gain exposure to the cryptocurrency’s volatility while benefiting from the program’s tax advantages. This strategy has proven particularly appealing amid the yen’s depreciation, which has eroded the purchasing power of Japanese investors. Gerovich, who attended Trump’s inauguration ceremony in Washington in January, has capitalized on this trend, emphasizing that the weaker yen makes Bitcoin an increasingly attractive hedge against monetary debasement.
Metaplanet’s aggressive Bitcoin accumulation strategy has set it on a collision course with the cryptocurrency’s notorious volatility. As of late January, the company held 1,762 Bitcoin, valued at approximately $171 million, and has set an ambitious target of accumulating 10,000 Bitcoin by the end of 2025 and 21,000 by the end of 2026. To fund these purchases, Metaplanet plans to issue 21 million shares through a complex financial instrument known as moving strike warrants—a move that could significantly dilute existing shareholders’ stakes. Meanwhile, the company is also exploring new ways to integrate Bitcoin into its remaining assets, including rebranding its sole surviving hotel, the Royal Oak in Tokyo’s Gotanda area, as “The Bitcoin Hotel.” The property is set to become a hub for Bitcoin-related seminars and events, further cementing Metaplanet’s identity as a leader in Japan’s burgeoning crypto economy.
Despite its meteoric rise, Metaplanet’s success is not without risks. The company’s heavy reliance on retail investors, many of whom have limited experience with the volatility of cryptocurrency markets, raises concerns about shareholder understanding of its strategy. Storm Research analyst Rhiannon Ewart-White warns that Metaplanet’s high exposure to retail investors could become a liability if Bitcoin’s price were to experience a sharp decline. “They need to make sure shareholders understand exactly what their strategy is,” she cautioned. For now, however, the momentum appears to be firmly in Metaplanet’s favor. The company is expected to report its first profit in years when it releases its fourth-quarter earnings later this year, a milestone that could further fuel its stock’s upward trajectory. As Japan’s crypto economy continues to grow, companies like Metaplanet and Remixpoint Inc., which has also embraced a Bitcoin accumulation strategy, are positioning themselves as key players in a market that could have far-reaching implications for the global financial system. Whether these companies can sustain their momentum in the face of Bitcoin’s inherent volatility remains to be seen, but one thing is clear: the era of crypto-driven investment in Japan has only just begun.
