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On Monday, shares in the Japanese hotel firm Metaplanet, which has transitioned to bitcoin investment, surged after announcing plans to raise around $5.4 billion to expand its cryptocurrency holdings.
Last Friday, the company revealed its intention to increase its bitcoin stash from its current amount to 210,000, aiming to hold over 1 percent of bitcoin’s total supply by 2027, valued at approximately $22 billion at current prices.
In 2024, the Japanese firm made a significant change in direction, as described by CEO Simon Gerovich, shifting from a hotel business to becoming a dedicated bitcoin treasury firm.
This bold investment strategy follows in the footsteps of billionaire Michael Saylor, who transformed his software firm Strategy into a heavily leveraged bitcoin investment venture, amassing thousands of bitcoins. Strategy’s market value has reached $104 billion, surpassing the worth of its 580,000 bitcoins as investors believe its value will increase faster than potential share dilution.
The swift gains have prompted several imitators globally. Metaplanet’s goal of acquiring 210,000 bitcoins would position it as the second-largest corporate bitcoin holder worldwide, behind Strategy.
Bitcoin’s price received a boost following Donald Trump’s election win and his commitment to implement policies favorable to the industry. His family has also sought to capitalize on market enthusiasm; last month, the Trump family’s media company aimed to raise $2.5 billion to buy bitcoin, following Strategy’s example. Eric Trump, the president’s son, joined Metaplanet’s advisory board in March.
Metaplanet has been steadily increasing its bitcoin holdings over the past year, significantly raising the volume of its purchases, leading to an impressive 8,850 percent rise in its stock price in two years, reaching ¥1,544 ($10.71).
The company now aims to hold 100,000 bitcoins by the end of 2026, up from its initial target of 21,000.
Shares jumped 15 percent on Monday as investors embraced its plans to gather more funds through warrants, which allow investors to buy shares. This move is dubbed the “largest stock acquisition rights issuance in Japan’s capital markets history.”
Management at the company assesses its performance using a Key Performance Indicator (KPI) known as ‘BTC Yield,’ which indicates the percentage growth in bitcoin per share, directing all capital market strategies.
In addition to its bitcoin-centric operations, Metaplanet mentioned it “owns and operates a hotel in Tokyo, rebranding it as The Bitcoin Hotel,” set to launch in early 2026.
Furthermore, “the company holds exclusive rights for Bitcoin Magazine in Japan, advancing bitcoin education and adoption,” it stated.
In April, the company added David Bailey, CEO of Bitcoin Magazine’s parent company, to its board of strategic advisers. Bailey is also in the process of establishing his own US-listed corporate treasury firm, Nakamoto Holdings, which is merging with healthcare company KindlyMD.
