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Japan’s Bitcoin Boom: How Metaplanet Turned Hotels into Crypto Gold
From Hotels to HODL: Metaplanet’s 4,800% Surge Amid Bitcoin Craze
The Bitcoin Hotel: Metaplanet’s Bold Bet on Crypto Pays Off
(Bloomberg) – Japan is experiencing a Bitcoin boom, fueled in part by U.S. President Donald Trump’s pro-crypto stance, which has sent Bitcoin demand soaring. One company riding this wave is Metaplanet Inc., a former hotel developer turned Bitcoin powerhouse, delivering staggering returns for its shareholders.
Metaplanet’s shares have skyrocketed by around 4,800% over the past year, making it the top-performing stock in Japan and one of the biggest global gainers, according to Bloomberg data. Bitcoin itself hit an all-time high of $109,241 on January 20, coinciding with Trump’s second inauguration, though it has since cooled due to global trade tensions.
🚀 A Bold Shift from Hotels to Bitcoin
Metaplanet’s transformation mirrors the strategy of Michael Saylor’s MicroStrategy Inc., which became a Bitcoin giant by amassing over $45 billion worth of the cryptocurrency.
Simon Gerovich, Metaplanet’s CEO and a former Goldman Sachs equity derivatives trader, was inspired by Saylor’s approach after hearing it on a podcast. Originally operating as Red Planet Japan Inc., a hotel developer since 2013, the company shifted to a “Bitcoin-first strategy” in early 2024 after the pandemic forced it to close all but one of its hotels.
The gamble paid off. Metaplanet’s shareholder base surged by 500% in 2024, reaching nearly 50,000 investors. While firms like Capital Group have invested, most shareholders are retail investors with limited crypto experience.
💰 From Losses to Profits
After six consecutive years of losses, Metaplanet reported an operating profit of ¥350 million ($2.3 million) for the year ending December 2024. This marks a significant turnaround, with analysts predicting the results will further boost the stock.
“Metaplanet has high exposure to the volatile retail base,” noted Rhiannon Ewart-White, a Japan equity analyst at Storm Research. “They need to ensure shareholders fully understand the risks of their Bitcoin-focused strategy.”
🌍 Trump’s Crypto Influence Reaches Japan
Gerovich, who attended Trump’s inauguration in Washington last month, credits the surge in Japanese Bitcoin interest to expectations of a “more Bitcoin-friendly regulatory environment” in the U.S.
Metaplanet isn’t alone. Japanese software developer Remixpoint Inc. also jumped into the crypto game, buying ¥1.2 billion worth of Bitcoin in September, resulting in a 300% surge in its stock price.
📈 Retail Mania and Tax-Free Investing
A large portion of Metaplanet’s retail investors purchased shares through Japan’s revamped Nippon Individual Savings Account (NISA), a tax-free investment program aimed at encouraging long-term growth.
For example, Getto Hagiya, an 18-year-old robotics student from Tokyo, made Metaplanet his first-ever investment under NISA after hearing Trump’s crypto-positive campaign promises. “I believe Bitcoin will be an indispensable asset in the future,” he said. He was also attracted by the company’s promise of free Bitcoin merchandise at shareholder meetings.
⚡ Big Bitcoin Ambitions Ahead
Currently, Metaplanet holds 1,762 Bitcoin (worth about $172 million as of January 28) and plans to increase its holdings to 10,000 by the end of 2025, with a target of 21,000 Bitcoin by the end of 2026. To fund these purchases, the company plans to issue 21 million shares through moving strike warrants.
In a nod to its hotel roots, Metaplanet will rebrand its sole remaining property, the Royal Oak in Tokyo’s Gotanda district, as “The Bitcoin Hotel” later this year. It plans to host crypto seminars and blockchain events to further engage the crypto community.
⚠️ Risks on the Horizon
While Metaplanet’s Bitcoin strategy has been highly profitable, experts warn of risks. “If the price of Bitcoin crashes, the company could face serious challenges,” said Ewart-White. Despite having a small but profitable hotel business, Metaplanet’s heavy reliance on Bitcoin makes it vulnerable to crypto market volatility.
As Japan’s crypto craze continues, Metaplanet’s future will largely depend on Bitcoin’s performance and its ability to balance risk with reward in the ever-changing world of digital assets.
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