Zhichao Finance learned that former President Trump’s support for cryptocurrency is further triggering a chain reaction, leading to a surge in demand for Bitcoin in the Japanese market. The latest example is a hotel operating company that has turned to reserve Bitcoin, bringing astonishing returns to shareholders. Data shows that Metaplanet Inc.'s stock price has risen over 4,000% in the past 12 months, making it the highest-gaining stock in the Japanese market during the same period and one of the highest globally.

Bitcoin hit an all-time high of $109,241 on January 20, when Trump was sworn in for his second term. Although it has erased some gains due to his trade policies inciting global instability, it is still above $95,000.

Metaplanet is one of many companies worldwide aiming to imitate Michael Saylor's Strategy (formerly MicroStrategy). The latter has transformed into a leveraged Bitcoin investment tool and industry giant after accumulating Bitcoin assets worth over 45 billion USD. Simon Gerovich, CEO of Metaplanet and a former Goldman Sachs equity derivatives trader, said he was attracted to the idea after hearing about Saylor's strategy on a podcast. He has been running Metaplanet, previously known as Red Planet Japan Inc., as a hotel developer since 2013, but shifted to a 'Bitcoin-first strategy' in early 2024 after the pandemic forced the company to close all hotels except one.

According to the company's disclosure, the number of shareholders has increased to nearly 50,000, with a 500% growth expected in 2024. Shareholders include Capital Group (which also invests in Strategy company), but the vast majority are retail investors, many of whom lack experience in volatile crypto assets.

Rhiannon Ewart-White, a Japanese stock analyst and managing director at UK Storm Research, stated: “Metaplanet relies heavily on a volatile retail base, and they need to ensure that shareholders fully understand their strategy.” The company has reported losses for six consecutive years and is expected to release its fourth-quarter earnings report later on Monday in Tokyo. Ewart-White noted that this might boost the stock.

Gerovich attended Trump's inauguration in Washington last month and stated in an interview that the more favorable regulatory environment for Bitcoin in the U.S. is exciting, which has led to a surge in demand for the token in Japan.

The company is not the only one in Japan mimicking MicroStrategy. For example, software developer Remixpoint Inc. announced last September plans to purchase 1.2 billion yen (approximately 8 million USD) worth of Bitcoin, after which the company's stock price rose over 300%. Most of Metaplanet's retail shareholders purchased shares through the Japanese Individual Savings Account (NISA) program. The Japanese government reformed this program in early 2024 to encourage citizens to use their savings for long-term growth and retirement.

In Japan, capital gains from directly purchasing Bitcoin are taxed up to 55%, making investing in stocks like Metaplanet through NISA a cheap and convenient option for small-scale and first-time buyers. Gerovich believes that the 'continued depreciation of the yen' also makes Japan a mature market for Bitcoin, as many investors are seeking to 'hedge against currency depreciation.'

According to a report from the company, as of January 28, Metaplanet holds 1,762 Bitcoins (currently valued at approximately 171 million USD) and plans to increase this number to 10,000 by the end of 2025 and to 21,000 by the end of the following year. To fund these acquisitions, the company plans to issue 21 million shares through a warrant.

It also plans to rename its only remaining hotel, the Royal Oak in the Gotanda area of Tokyo, to 'The Bitcoin Hotel' later this year, to host seminars and events related to Bitcoin.

Ewart-White indicated that behind Metaplanet's purchase of Bitcoin is a 'profitable, albeit small' hotel business; however, 'it would be quite difficult for them if the price of Bitcoin crashes.'