Since April 8, the company’s shares have risen by 389% on the Tokyo Stock Exchange

Japan’s Metaplanet has become a leader in the growth of stock returns in the local market after starting investing in BTC

23.05.2024 - 13:30

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3 min

What’s new? Japanese investment company Metaplanet has been showing the fastest growth rate of stock value in the local market after implementing a crypto investment strategy. On April 8, for example, the company announced that it started buying bitcoins and has since accumulated 117,7 coins on its balance sheet worth $8,2 million at the current exchange rate.

Google Finance’s data

What else is known? As a result, Metaplanet’s shares listed on the Tokyo Stock Exchange (TSE) have risen 389% since the announcement. The weekly increase was 158%, and on May 21-22, the securities rose 127% to 93 JPY.

Due to the sharp price increase, the TSE suspended trading at least twice in the last week. According to TSE rules, stocks available on the exchange with a price below 100 JPY can rise by a maximum of 30 JPY each day. Metaplanet violated this rule on two consecutive days.

Metaplanet said in a May 13 statement that the company aims to strategically strengthen its bitcoin reserves as the local currency weakens. Japan has a debt-to-GDP ratio of 261%, which Metaplanet notes is the worst result among developed countries.

The Japanese yen has fallen by more than 34% against the US dollar since the beginning of 2021, while bitcoin has risen by almost 190% against the JPY over the past 12 months, the company notes.

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By the time of writing, the company’s shares had fallen by 15,56% per day, to 76 JPY.

Earlier, the founder and former head of the crypto exchange BitMEX Arthur Hayes reiterated the possibility of BTC growth to $1 million. In his opinion, this will happen as a result of an influx of funds into the asset amid the weakening of fiat currencies. He called for monitoring the USD/JPY exchange rate as the most important macroeconomic variable. The businessman expects an acceleration of the decline of the Japanese yen in the fall of this year.

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