Metaplanet shares soar 4800% amid Bitcoin acquisition

Metaplanet shares have surged 4,800% over the past year as the company consistently added Bitcoin (CRYPTO:BTC) to its treasury, emulating MicroStrategy's strategy.

Nearly a year after announcing its Bitcoin treasury strategy in April 2024, the company's stock has increased 4,800% in the last 12 months as of February 10, according to Bloomberg data.

Metaplanet, formerly a hotel developer, has transitioned to a "Bitcoin-first strategy."

Led by former Goldman Sachs trader Simon Gerovich, Metaplanet shifted from hotel operations to cryptocurrency investment in early 2024 after suffering losses during the pandemic.

The company's focus on Bitcoin has drawn comparisons to Michael Saylor's MicroStrategy.

The number of Metaplanet shareholders grew 500% in 2024, with 50,000 people or entities investing in the company.

Metaplanet has acquired 1,762 BTC, worth approximately $171 million, as of Jan. 28.

The company plans to acquire up to 21,000 BTC by the end of 2026.

To expand its Bitcoin holdings, Metaplanet plans to issue 4 billion yen (approximately $26.3 million) in ordinary bonds.

The company will rebrand its last remaining hotel in Tokyo’s Gotanda district as “The Bitcoin Hotel” in 2025, hosting Bitcoin-related seminars and networking events.

The company's strategic shift has propelled it into the spotlight as Japan’s leading Bitcoin proxy stock.

However, equity analyst Rhiannon Ewart-White at Storm Research warns of potential risks, stating, "Metaplanet’s dependence on Bitcoin price movements makes it highly volatile."

Observers have increasingly seen Bitcoin as a strong alternative to holding cash on balance sheets and as a hedge against inflation.

According to CoinGecko, at least 32 publicly traded companies hold BTC on their balance sheets.

Bitcoin has risen 133% in the past 52 weeks.

At the time of reporting, the Bitcoin (BTC) price was $97,849.86.