- Metaplanet shifts from hotels to Bitcoin, aiming to lead Asia’s Bitcoin-native companies.
- The firm’s Bitcoin holdings grow, securing capital while hedging against Japan’s inflation.
- Institutional interest in Bitcoin grows, with Metaplanet adopting strategic risk management.
Metaplanet is shifting its corporate strategy to Bitcoin, intending to become Asia’s leading Bitcoin-native public company. After pivoting from its original hotel business model, the company is focusing on Bitcoin acquisition to preserve capital and maximize long-term value.
Metaplanet’s Strategic Transition to Bitcoin Holdings
According to a post by Simply Bitcoin, Metaplanet has adopted a Bitcoin-centric corporate strategy, transitioning from a hotel operator to a leading corporate Bitcoin holder. By April 7, 2024, the company had acquired 117.7 BTC at an average price of ¥7.1 million per coin, totaling ¥835 million.
Metaplanet converted 22.2% of its liquid assets into Bitcoin, aiming to hedge against Japan’s weakening yen and rising inflation. The firm views Bitcoin’s decentralization and capped supply as significant advantages amidst Japan’s record-high national debt and economic uncertainty.
Leveraging Bitcoin’s Performance and Growth
Metaplanet’s report of research exhibits its belief in Bitcoin as a capital preservation asset of value. The company compared Bitcoin’s outperformance over traditional assets like equities, gold, and real estate using its compound annual growth rate (CAGR) of 102% from 2011 to 2023.
In further defining its strategy, the company’s Bitcoin longs aim to benefit from the scarcity of Bitcoin, supported by halving cycles and the limited supply of 21 million coins. As part of its strategy, Metaplanet will increase its positions by dollar-cost averaging (DCA) into Bitcoin, progressively hedged against volatility.
Institutional Interest and Strategic Risk Management
Metaplanet’s report highlights growing institutional demand for Bitcoin as MicroStrategy and Tesla put Bitcoin on their balance sheets. According to the report, Bitcoin’s robust infrastructure, including the Lightning Network, is further propelling its usage as an international payment network.
Looking ahead, Metaplanet has adopted structured financing instruments, such as moveable strike warrants, to minimize market effect and fund Bitcoin purchases at minimal dilution. The firm’s treasury model includes Bitcoin both as a productive asset and as a hedge against fiat currency depreciation, in line with its long-term goals.
