Japanese Version of "MicroStrategy": Metaplanet Key Swaps Private Key, Hotel Transforms into Bitcoin Vault

Original Article Title: Metaplanet's Bitcoin Story: Hotels to Hodling

Original Article Author: Token Dispatch, Thejaswini MA

Original Article Translation: Block unicorn

A company that once operated love hotels now positions itself as Japan's gateway to Bitcoin, embodying a unique Japanese twist. Metaplanet's journey from the hotel industry to holding digital assets reads like a boardroom thriller — the protagonist's room key has been swapped for a private key.

In just over a year, Metaplanet has transformed from a struggling hotel company to Asia's largest publicly traded Bitcoin holder, ranking 11th globally. While headlines focus on Bitcoin purchases, the true core of the story lies in how a traditional Japanese company navigated regulatory constraints, shareholder skepticism, and market volatility to execute what may be one of the boldest corporate strategic transformations in recent years.

Origins: A Company in Search of Purpose

Metaplanet's story did not begin with grand ambitions but with humble realities. As a hotel company, it operated hotels across Japan. The business model was straightforward: provide accommodation, generate revenue, and repeat. It was neither revolutionary nor groundbreaking. Just the kind of stable, predictable business that Japanese companies have excelled at for decades.

However, the company's financial performance told a different story. Metaplanet's stock price languished, hotel assets underperformed, and the management was looking for a new direction. By early 2024, the company was ripe for a reshaping. Simon Gerovich, a seasoned investment banker, brought in with what seemed like a ludicrous vision for hotel guests, joined Metaplanet: to transform the company into Japan's MicroStrategy.

The Awakening of Bitcoin

Metaplanet's Bitcoin journey began in May 2024 when the company announced its first purchase of 117.7 bitcoins, valued at around $7.2 million. This was a strategic transformation announced with almost a manifesto-like solemnity. The company adopted the so-called "Bitcoin Reserve Strategy," positioning cryptocurrency as its primary corporate reserve asset. This decision was accompanied by a comprehensive restructuring of the company's operations and philosophy.

They now own more Bitcoin than El Salvador. Just think, a Japanese hotel company owns more Bitcoin than a country that has made Bitcoin legal tender.

Since their first purchase, Metaplanet has been very consistent in accumulating Bitcoin:

· May 2024: Additional purchase of 23.35 BTC

· July 2024: Another purchase of 20.381 BTC

· August 2024: Acquisition of 21.88 BTC

· September 2024: Multiple purchases totaling over 100 BTC

· December 2024: Holdings reach 1,762 BTC (starting to take it seriously)

· Q1 2025: A total accumulation of 5,034 BTC in three months (full-on commitment)

· May 2025: After buying 1,241 BTC, their total holdings reach 6,796 BTC

Their average cost? Approximately $89,492 per BTC. Considering the current price, the timing seems quite good. Metaplanet is now the largest Bitcoin holder among Japanese corporations and one of the most significant Bitcoin holders among publicly traded companies globally.

The rise in Bitcoin's price in 2024 significantly increased Metaplanet's holdings' value, bringing in unrealized gains far exceeding its traditional hotel revenue.

Q1 2025 Data

· Record Operating Profit: Revenue of 877 million yen resulted in a profit of 592 million yen

· Bitcoin Revenue: Harvested 770 million yen through option premium (88% of total revenue)

· Hotel Operations Revenue: Only 104 million yen (12% of revenue)

· Bitcoin Holdings: 6,796 BTC (compared to 1,762 BTC at the end of 2024)

· Unrealized Bitcoin Losses: Started Q1 with 740 million yen loss, but reversed to 1.35 billion yen gain by May 12

What is Bitcoin Yield Farming? In simple terms, they sell cash-secured Bitcoin put options, collect a premium, and meanwhile, buy more Bitcoin at a lower price when the option is exercised.

Their stock price? It has risen by 3000% since starting the Bitcoin journey. Meanwhile, traditional hotel stocks may still be struggling to recover from the lows of 2020.

While Bitcoin itself has performed well during this period, Metaplanet's over 3000% surge far outstrips Bitcoin's returns, indicating investors are willing to pay a premium for the following factors:

· Their innovative funding mechanism

· Execution of the "BTC Yield" strategy

· Opportunity to gain Bitcoin exposure within Japan's regulatory framework

· Company's ability to leverage Bitcoin exposure

Where Does the Money Come From?

Let's break it down.

1. Dynamic Strike Call Options (The Ingenious Part)

· They sold 210 million "call options" to investors

· These options only convert to shares when Metaplanet stock price rises

· Result: Shareholders are diluted only when everyone is making money

· They raised 76.6 billion yen in this manner and did not issue at a price below market value

2. Zero-Coupon Bonds (Free Funds)

· They borrow money and pay 0% interest

· Why would someone lend money for free? Because if Bitcoin skyrockets, they have potential upside

· Latest: Borrowed 3.6 billion yen at 0% interest

3. Bitcoin Yield Farming (Let Bitcoin Make Money Itself)

· They sell Bitcoin "insurance" (cash-secured put options).

· If Bitcoin plunges, they are forced to buy more (which is what they want).

· If Bitcoin doesn't plummet, they keep the option premium.

· In Q1 2025, 88% of the revenue came from this strategy.

4. Hotel Business Cash Flow

· They still own some hotels, generating 104 million yen in revenue per quarter.

· All this cash is directly used to purchase Bitcoin.

Positive Feedback Loop

· Purchase Bitcoin with raised funds.

· Bitcoin price increases → Stock price rises.

· Rising stock price → More warrants can be sold.

· Purchase more Bitcoin with warrant funds.

· Repeat the above process.

Why Does This Work?

· They only issue new stocks (warrants) when the stock price is rising.

· They borrow money at zero interest (zero-coupon bonds).

· They profit from Bitcoin's volatility (options trading).

· Everything feeds back into the cycle of buying more Bitcoin.

If Bitcoin were to crash and the stock price were to fall, the entire mechanism would cease to function. No one would buy warrants, bonds would become hard to sell, and they would be unable to fund further Bitcoin purchases. When asked about stock price concerns, Grovich's response was, "We are just getting started." Given that their current holdings already exceed that of an entire country, their confidence is unquestionable.

Metaplanet also announced plans to issue another $21 million bond to EVO FUND. This marks their 14th bond issuance to date. These bonds? Naturally, they are zero-interest, because who needs that return when you have Bitcoin? The company is establishing a wholly-owned subsidiary, Metaplanet Treasury Corp, in Florida with plans to raise $250 million to expand its Bitcoin purchasing power outside Japan. Clearly, one country is no longer enough to satisfy their buying appetite.

Comparison with MicroStrategy

Metaplanet does not engage in hedging operations. Their strategy is not a 50% Bitcoin, 50% hotels strategy but a full-on orange coin (Bitcoin) strategy. Their entire business model now is:

· Raise funds

· Purchase Bitcoin

· Generate revenue from Bitcoin volatility

· Repeat the above process

Metaplanet's strategy is clearly inspired by MicroStrategy's transformation under Michael Saylor's leadership. However, this Japanese company operates in a different regulatory and cultural environment, bringing both opportunities and constraints.

Metaplanet has introduced its own key performance indicator (KPI) called "BTC Yield," measuring the growth of bitcoin holdings per share over time. The first quarter of 2025 showed a 170% BTC Yield. This means that despite the company issuing more shares, the amount of bitcoin per share held by shareholders increased by 170%.

In comparison, the achievements Metaplanet made in three months took MicroStrategy 19 months to accomplish. Their market net asset value grew 3.8 times faster than MicroStrategy.

Unlike MicroStrategy, which benefited from the mature U.S. capital market and complex convertible bond market, Metaplanet must navigate Japan's more conservative financial environment. Japan's corporate bond market is underdeveloped, and retail investors may have limited interest in leveraged bitcoin investments.

Metaplanet also benefits from being an early mover in the Japanese market. As a leading bitcoin custodian among Japanese publicly listed companies, it has attracted domestic and international capital seeking exposure to Japanese bitcoin. The company's background in the hotel business also provides a narrative cushion. Unlike a pure-play bitcoin company, Metaplanet retains operational business that could theoretically support the company in case the bitcoin strategy fails. This could provide some reassurance to more conservative investors.

Our Take

Metaplanet's transformation represents the profound evolution of digital-era businesses. This is a company that recognized the imminent obsolescence of traditional business models and decisively placed a bold bet on an emerging asset class. Metaplanet essentially picked up MicroStrategy's playbook and optimized it for the Japanese market. While MicroStrategy issued convertible bonds, Metaplanet pioneered dynamic strike equity warrants that only dilute shareholders when the stock price rises. The result? A more efficient bitcoin accumulation engine with the regulatory advantage of Japan.

This bold move is striking. Most corporate transformations involve incremental changes—a retailer shifting to online, a media company embracing streaming. Metaplanet, on the other hand, completely abandoned its core competency and wagered the company on an asset that barely existed when it started. The success of this strategy largely depends on the long-term trajectory of bitcoin. If bitcoin continues to be adopted by institutions and governments, Metaplanet's early positioning may prove to be visionary. The company is essentially transforming into a leverage play on bitcoin adoption rates.

If Bitcoin were to stagnate or face regulatory crackdown, Metaplanet's strategy could have disastrous consequences. The company would be left with a shrunken hotel business, and its cryptocurrency holdings would also face massive unrealized losses. What is certain is that Metaplanet has established a template for corporate adoption of Bitcoin, which other companies will study—whether as inspiration or a cautionary tale. In a world where traditional business models are constantly being disrupted, perhaps the most rational strategy is to fully embrace this disruption.

Sometimes, survival requires not just adaptation, but a complete metamorphosis. Metaplanet's leadership's bet on Bitcoin represents the future of value storage. Time will tell whether they were visionary or reckless. But in an era where stagnation often means regression, a company that dares to risk everything to uphold its beliefs displays a kind of admirable courage. Whether this transformation leads to prosperity or peril remains one of Japan's most captivating corporate stories today.

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