Inspired by MicroStrategy’s Bitcoin investment strategy, Metaplanet took off like a rocket after announcing its plans to invest in Bitcoin in early April. This increase caused the Tokyo Stock Exchange to activate the circuit breaker and attract the attention of investors.

Metaplanet stock price is currently hovering around JPY 93 and is up almost 130% in the last two days. This increase brought the company’s market value close to $1 billion. But what lies behind this rise?

The main purpose of Metaplanet’s Bitcoin investment strategy is to combat the economic difficulties facing Japan. Japan has one of the highest debt-to-GDP ratios among developed countries (261%), and the Japanese Yen has depreciated significantly against the US dollar since the beginning of 2021. Metaplanet sees Bitcoin investments as a protection mechanism against these negative economic indicators.

In its statement dated May 13, the company stated that it “will use all capital market instruments to strategically strengthen its Bitcoin reserves.” This statement reveals that they plan to not only accumulate Bitcoin but also strategically manage their Bitcoin assets using various financial instruments.

Metaplanet’s Director of Bitcoin Strategy, Dylan LeClair, noted the company’s recent performance and stated that Metaplanet has been the “best performing stock in Japan” for two consecutive days. This shows that traditional investors’ interest in cryptocurrencies is increasing and they are considering including Bitcoin investments in their diversification strategies.

However, Metaplanet’s rise cannot be explained by local interest alone. Arnab Naskar, one of the founders of the STOKR security token platform, recently expressed his desire to tokenize Metaplanet shares on Bitcoin’s layer-two network Liquid. If this happens, it may open global access to Metaplanet shares and expand the company’s investor base.

Metaplanet’s strategy bears similarities to MicroStrategy’s Bitcoin investment move. Both companies see Bitcoin as a hedge against inflation and as an investment with the potential for high returns over the long term. However, it is worth noting that Metaplanet has not yet reached the level of MicroStrategy’s institutional Bitcoin reserves.

Although it is too early to measure the success of Metaplanet’s Bitcoin investment strategy, there are some points worth noting. First, it is necessary to see how the economic situation in Japan is reflected in the price performance of Bitcoin. The company’s return on cryptocurrency investments in the long term will be an important monitoring point for other investors.

Metaplanet’s Bitcoin move shows that the interaction between traditional finance and the cryptocurrency market is increasing. This may both increase the interest of traditional investors in cryptocurrencies and strengthen the perception of Bitcoin as a hedge against inflation. However, it is necessary to closely monitor how Metaplanet’s stock prices and Bitcoin’s performance will progress in the coming period.