Is this the birth of a “Japanese version of MicroStrategy”?
In April 2024, Metaplanet, which will be listed on the Tokyo Stock Exchange Standard Market, launched a Bitcoin investment strategy, which became a hot topic.
MicroStrategy, which is based in the United States, is known as a pioneer in business intelligence (BI). However, in recent years, the public's perception of the company as a representative company that holds Bitcoin is likely to change. At present, it holds 226,500 BTC (at the time of writing), making it the largest single company in the world in terms of the amount held. Compared to other companies, its holdings are overwhelming, and its asset value is approaching 2 trillion dollars.
Like MicroStrategy, Metaplanet has also shifted its focus to a strategy that looks at the future potential of Bitcoin. Recently, it has expressed its intention to purchase 8.5 billion yen worth of Bitcoin through fundraising. Due to this attitude, the view that Metaplanet is becoming a “Japanese version of MicroStrategy” is gradually spreading.
It must have been novel for a listed company to decide to invest in Bitcoin in Japan. Perhaps because of the market conditions in the cryptocurrency market when Metaplanet announced its Bitcoin investment strategy, the company's stock price also rose significantly. At the time of writing, the company's stock price has risen by well over 500% since the beginning of the year. This is proof that the market is favorably disposed towards Metaplanet and the future prospects of Bitcoin.
How will Metaplanet move forward with Bitcoin in the future? Our editorial team spoke with Simon Gerovich, head of Metaplanet, which is attracting attention both inside and outside the Web 3.0 industry. We will explore the background to Metaplanet's decision to entrust its future to Bitcoin and what strategy it will pursue in the future.
Metaplanet announced its Bitcoin investment strategy in April this year. What was the background behind this decision?
Simon Gerovich (hereinafter Simon): The decision to adopt the Bitcoin Standard was influenced by several factors, but primarily by the Japanese economic environment. The continued devaluation of the yen, Japan's large government debt, and long-term real negative interest rates created an unsustainable financial environment for holding traditional assets.
As a result, Metaplanet Co., Ltd. has come to view Bitcoin as a finite asset that is not dependent on sovereignty and has long-term growth potential that can act as a hedge against these macroeconomic pressures.
We view Bitcoin as a strategic reserve asset that protects our balance sheet from currency devaluation, and we believe that its global monetization and adoption could bring significant benefits in the future.
Since announcing your investment in Bitcoin, your stock price appears to have risen significantly. Was there any backlash from within the company or from shareholders during the planning stage?
Simon: There was no opposition from within the company or from shareholders. In fact, at our extraordinary general meeting held in June this year, we received overwhelming support from shareholders to pivot to Bitcoin.
Our board of directors recognized the limitations of our previous business model, particularly the difficulty of expanding our hotel business. Our strategic shift to Bitcoin represented a more visionary, scalable and innovative approach, which aligned with our long-term goals. By fully explaining the macroeconomic risks and highlighting Bitcoin's growth potential, we were able to demonstrate that this decision would enhance shareholder value and put the company in a good position for sustainable growth.
If you had invested earlier, you could have made more money, so why did you choose to invest in Bitcoin at this time?
Simon: Timing is always important, but we were confident that April was the right time for Metaplanet to adopt the Bitcoin Standard. We have prioritized a well-prepared strategic shift rather than rushing into an investment.
Bitcoin's long-term value proposition remains solid regardless of short-term price fluctuations. We view Bitcoin as a long-term investment and believe that the price at a given point in time will not erode its long-term potential.
Metaplanet will raise funds to purchase 8.5 billion yen worth of Bitcoin in the future. How much Bitcoin do you expect to acquire in the future?
Simon: Our goal is to continue to increase our Bitcoin holdings as part of our corporate financial strategy. We are currently raising funds to purchase additional Bitcoin, and we expect to acquire more in the future based on favorable market conditions.
The exact amount of Bitcoin we will acquire in the future will depend on opportunities in the Bitcoin market and the broader capital market. We intend to steadily accumulate Bitcoin over time to support this strategy, utilizing means such as debt and equity financing.
At this stage, Metaplanet is only investing in Bitcoin, but is there a possibility that we will look at altcoins in the future?
Simon: Metaplanet is a Bitcoin-only company, and that will remain the case. We believe that Bitcoin is the best asset in the digital economy, with unique characteristics and attributes that other digital assets do not have.
Bitcoin's absolute scarcity, decentralized nature, and strong security model are fundamentally different from other digital assets and position it as the most reliable store of value and the safest currency ever created. While other assets may have their own use cases, we are strongly committed to Bitcoin and see no reason to diversify into altcoins.
Simon, where do you see Bitcoin going in the future? What are your predictions, especially 5 and 10 years from now, and why?
Simon: It's hard to predict exact numbers, but I strongly believe that Bitcoin will increase in value significantly over the next 5 to 10 years. I see the potential for Bitcoin to exceed $1 million per BTC in 5 years.
This is based on several factors: Bitcoin's fixed supply, growing adoption by institutional investors, its role as a store of value, and the broader macroeconomic environment that favors hard assets over fiat currencies. Bitcoin's growing acceptance by businesses and governments also supports this long-term outlook.
You recently announced your partnership with SBI VC Trade. Will you continue to actively partner with Web 3.0-related companies? If so, what fields of companies do you foresee partnering with?
Simon: We have a strong focus on the Bitcoin ecosystem and plan to actively seek partnerships to promote Bitcoin adoption, especially in Japan. To that end, we have acquired an exclusive license to "Bitcoin Magazine Japan"* and aim to create a platform to provide high-quality localized content to engage and educate the Japanese Bitcoin community.
We are always actively seeking opportunities with companies that share our vision of expanding Bitcoin adoption. We welcome other companies and stakeholders in the Bitcoin ecosystem to contact us about collaboration opportunities to promote innovation and integrate Bitcoin into the broader economy.
*Glossary Bitcoin Magazine Japan: Bitcoin Magazine is a specialized Bitcoin media launched in 2012. Bitcoin Magazine Japan will be its Japanese version.
Please tell us about your future vision and specific goals for Metaplanet.
Simon: Metaplanet's future is focused on increasing shareholder value through a Bitcoin-first strategy. Our goal is to establish Metaplanet as a leading Bitcoin investment institution in Japan and internationally, and to use Bitcoin not only as a financial reserve asset but also as a platform for new business development.
We aim to build a diverse ecosystem around Bitcoin, and our plans include media, consulting, and revenue generation through options strategies. In the next few years, we will focus on expanding our Bitcoin holdings and expanding our influence within the global Bitcoin community while exploring new partnerships.
▶Metaplanet's Bitcoin Strategy Major Moves
Metaplanet Home Page
Meta Planet Official X
◉ Simon Gerovich
Simon Gerovich is CEO of Metaplanet Inc. and leads the company's innovative Bitcoin investment strategy. He has been an investor in the digital asset ecosystem since 2014 and has built a career combining traditional finance with cutting-edge innovation.
He started as an equity derivatives trader at Goldman Sachs in Tokyo, and later co-founded and served as chairman of Red Planet Hotels, a leading hotel group focused on the value hotel sector in Asia. He holds a degree in applied mathematics from Harvard University and is an active member of YPO, the global leadership organization for chief executive officers.
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