Metaplanet’s stock went up a lot, 90% in just two days, after they added $6. 56 million in Bitcoin to their balance sheet.

Photo by Michael Förtsch on Unsplash

Metaplanet (3350), a web3 infrastructure provider, saw its Tokyo-listed stock rise nearly 90% in just two days after adding $6.56 million in Bitcoin (BTC) to its balance sheet.

According to data from Google Finance, the company’s shares are currently trading at 36 yens, up by 89% over the day. 

The surge is mostly because Metaplanet added Bitcoin to its balance sheet. This happened with the help of Sora Ventures, Mark Yusko from Morgan Creek Capital, and other important partners.

Metaplanet used to be called Red Planet and ran budget hotels. Now it’s a company that makes software for Web3.

Metaplanet is buying Bitcoin to protect itself from rising prices.

Metaplanet announced this week that it will start using Bitcoin as part of its treasury assets for a few reasons.

First, it wants to reduce how much it relies on the Japanese yen, which has been affected a lot by Japan’s low-interest rates.

Over time, the yen is not as important as it used to be in the world.

In a letter to its shareholders, Metaplanet said they are worried about the yen and think Bitcoin could be a good way to protect against rising prices, help the economy stay strong, and increase in value over time.

The company’s plan is very similar to the plan of MicroStrategy, a software company in Virginia.

In 2020, MicroStrategy got attention for saying it wanted to buy a lot of bitcoin to keep as part of its company’s money.

Ever since then, the price of MicroStrategy’s stock has often gone up and down in the same way as the value of Bitcoin, showing how investors feel about the cryptocurrency market.

Right now, MicroStrategy owns the most bitcoins of any company. They have over 214,000 bitcoins, which are worth more than $15 billion, according to bitcointreasuries. net

Jason Fang, the person in charge and co-creator of Sora Ventures, told about his thoughts on working with Metaplanet.

He said working together with this company can help Japanese investors get into cryptocurrencies without having to buy them directly.

This new way to invest also helps reduce the high tax on crypto profits that have not been realized yet, which has been a controversial issue in Japan.

Corporate Bitcoin Holders Start to Reap Rewards

Many large corporations that have invested in Bitcoin, such as Microstrategy, have already made a significant profit.

As per data aggregated by Saylortracker, at current market prices of around $65,000, MicroStrategy’s position now commands a total valuation exceeding $12.57 billion.

This means the company sits on tremendous unrealized profits of almost $6.5 billion on paper, reflecting a gain of almost 104% yield-to-date from an investment allocation started under Saylor back in 2020.

Bitcoin is currently trading at around $69,000, down more than 3% in the past day.

The top cryptocurrency is 5% away from its all-time high of $73,750, set on March 14.

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