How MicroStrategy’s Bitcoin Strategy Inspired Japan’s MetaPlanet

Since MicroStrategy CEO Michael Saylor embraced Bitcoin as the company’s primary reserve asset, he has become one of the leading voices in the Bitcoin community and a leading advocate for Bitcoin for corporations. Now the Japanese company MetaPlanet is following the same path.

I spoke with head of Bitcoin strategy Dylan LeClair to fully understand this approach. Saylor’s MicroStrategy has proven it works, but repeating that success may not be easy. “Metaplanet’s decision to adopt the Bitcoin standard was a rational response to the current economic situation, both in Japan and around the world,” LeClair told me in an email interview.

Economic Problems Drive Bitcoin Adoption at MicroStrategy

The economic context and inflationary environment were among the reasons Saylor argued early in his Bitcoin journey in 2020. MicroStrategy began accumulating Bitcoin in August 2020. The company made headlines by announcing its first purchase of 21,454 BTC, worth approximately $250 million, on the exchange. time, as reported by CoinDesk.

This initial acquisition was positioned as a strategic hedge against inflation, making MicroStrategy one of the first major publicly traded companies to add Bitcoin to its balance sheet. Since then, MicroStrategy, led by CEO Michael Saylor, has been a consistent buyer of Bitcoin. According to Bitcoin Treasuries, the company owns 252,220 BTC. MetaPlanet leads by example.

“It is clear that the level of public debt relative to GDP has reached unsustainable levels. This debt is unlikely to be repaid in real terms without long-term financial repression – in essence, the period when inflation exceeds interest rates becomes the main strategy for policymakers,” Dylan argued.

MetaPlanet’s Strategic Entry into Bitcoin: Is It Too Late?

But is it too late to adopt this approach? The competition is more extensive than when MicroStrategy went this route. As of the end of October 2024, US Bitcoin ETFs hold over 1 million BTC, which is a major accumulation milestone.

Latest estimates put their combined holdings at approximately 1.04 million BTC, which is about 5.26% of the total Bitcoin supply. Notably, BlackRock’s iShares Bitcoin Trust is the largest holder among these ETFs, with significant contributions also coming from Grayscale’s Bitcoin Trust, ARK, and other recently approved spot ETFs.

Far from believing that it is “too late” to accept Bitcoin, Metaplanet firmly believes that we are still in the early stages of institutional acceptance and acceptance of Bitcoin. Our timing is strategic and we believe that adopting Bitcoin now puts us in a good position for the long term. “, Leclerc said in detail.

MetaPlanet’s Bitcoin Acquisition Strategy: A Japanese Perspective

MetaPlanet’s MicroStrategy-inspired approach includes various financing mechanisms, including conventional bonds, exercised warrants, and a ¥10 billion (~$70 million) equity rights issue. “Our focus is on Bitcoin per share (BTC/share), which we expect to grow by more than 50%,” LeClair explained.

The company currently has a base value of 1018.17, which is five times its previous market capitalization before making this strategic change.

MetaPlanet strictly adheres to Japanese rules in its Bitcoin strategy. In a recent rights issue worth 10 billion yen, Leclerc noted that “8.5 billion yen of the funds raised will be used to purchase more Bitcoin.”

The Tokyo Stock Exchange has raised several issues in an apparent attempt to benefit shareholders. This survey allowed the company to fully reveal its strategy. “In addition to being a store of value, Bitcoin can also serve as collateral, facilitate trading, and generate income through the futures and options markets. Our goal is to continue to grow both our total Bitcoin assets and BTC/shares for our shareholders,” LeClair said.

“Our goal is to increase both our total Bitcoin holdings and the share of BTC for our shareholders,” LeClair confirmed.

To provide secure storage for Bitcoin, MetaPlanet partners with institutional custodians in Japan. “As a public company, the complexity of managing the custodian is high, so transparency is critical,” LeClair said, noting their partnership with Hoseki to provide backup proof of their assets.

MetaPlanet’s Vision: Driving Corporate Adoption of Bitcoin

The Japanese company aims to lead by example by promoting Bitcoin as a corporate reserve asset in Japan and around the world. “We expect more companies to adopt Bitcoin as a reserve asset, although the scale of adoption will vary,” LeClair said.

MicroStrategy’s success in introducing Bitcoin has taken its stock to new heights, making it one of the best performing stocks for 2024. S&P 500 and other major technology stocks.