From the CEO of MicroStrategy, Michael Saylortook the path of Bitcoin, making it the company’s primary reserve asset, he became one of the leading voices in the Bitcoin community and the leading advocate of Bitcoin for businesses. Today, a Japanese company called MetaPlanet is following the same path.

I spoke with Head of Bitcoin Strategy Dylan LeClair to fully understand this approach. at Saylor MicroStrategy surveyed that it worked, but replicating that success could be tricky. “Metaplanet’s decision to adopt a Bitcoin standard was a rational response to the current economic climate, both in Japan and around the world,” LeClair told me in an email interview.

Economic Challenges Drive Bitcoin Adoption at MicroStrategy

The economic backdrop and inflationary environment were among the reasons Saylor argued at the start of 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, valued at approximately $250 million at the time, as CoinDesk reported.

This initial acquisition was precisely 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 buying Bitcoin regularly. The company is sitting on 252,220 BTC according to Bitcoin Treasures Numbers. MetaPlanet takes the example.

“It is clear that sovereign debt levels, relative to GDP, have reached unsustainable heights. This debt is unlikely to be repaid in real terms without prolonged financial repression. In fact, a period where inflation exceeds interest rates becomes the main strategy of policymakers,” Dylan said. argued.

MetaPlanet’s strategic entry into Bitcoin: is it too late?

But is it too late to adopt this approach? The competition is broader than when MicroStrategy took this route. By the end of October 2024, US-based Bitcoin ETFs held over 1 million BTC, marking a significant accumulation milestone.

Recent estimates place their combined holdings at around 1.04 million BTC, which represents around 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 newly approved spot ETFs.

“Far from believing that it is “too late” to adopt bitcoin, Metaplanet firmly believes that we are still in the early stages of institutional adoption and acceptance of bitcoin. Our timing is strategic and we believe the adoption of bitcoin now positions us well for the long term. “, detailed LeClair.

MetaPlanet’s Bitcoin Acquisition Strategy: A Japanese Perspective

MetaPlanet’s approach, inspired by MicroStrategy, involves various financing mechanisms, including ordinary bonds, exercised warrants, and a 10 billion yen (~$70 million) stock rights issue. “We are focused on measuring ‘bitcoin per share’ (BTC/share), which we expect to grow by over 50%,” LeClair explained.

The company now holds 1018.17, a base valued at five times its previous market capitalization before adopting this strategic shift.

MetaPlanet strictly adheres to Japanese regulations in its Bitcoin strategy. In a recent ¥10 billion stock rights offering, LeClair noted that “¥8.5 billion of the funds raised would be allocated to acquiring more Bitcoin.”

The Tokyo Stock Exchange has raised some questions by explicitly seeking shareholder benefits. This questioning allowed the company to fully address its playbook. “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 increase both our overall holdings in bitcoins and BTC/stock for our shareholders,” LeClair said.

“Our goal is to increase both our overall Bitcoin holdings and BTC/stock for our shareholders,” LeClair asserted.

For secure custody of Bitcoins, MetaPlanet collaborates with institutional custodians in Japan. “As a public company, the complexity of managing custody is high, so transparency is crucial,” LeClair said, highlighting their partnership with Hoseki to provide proof of reserve for their holdings.

MetaPlanet’s vision: promoting the adoption of Bitcoin by businesses

This Japanese company aims to lead by example in advocating for 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 and scope of adoption varies,” LeClair said.

MicroStrategy’s success in adopting Bitcoin has propelled its stock to new highs, making it one of the best performing stocks in 2024. In October, MSTR surged approximately 552% since the start of year, hitting a record high of $212, well outpacing the S&P 500 and other major tech stocks.