The story of Metaplanet is one of radical reinvention—a journey from a modest Japanese economy hotel chain to one of the world’s most aggressive corporate Bitcoin treasuries. As of June 30, 2025, Metaplanet holds 13,350 Bitcoins at an average cost of $97,832 per BTC**, with a total investment of approximately **$1.31 billion. Its recent purchase of 1,005 BTC for about $107.6 million underscores its relentless accumulation strategy. With a year-to-date Bitcoin yield of 348.8% in 2025, the company has captured global attention.
But how did a hotel business pivot into a Bitcoin powerhouse? What drives its bold financial maneuvers? And what risks lie ahead?
The Rise and Fall of Red Planet Japan
Metaplanet began life in 2010 as Red Planet Japan, founded by former Goldman Sachs derivatives trader Simon Gerovich in Tokyo. Positioned as a provider of high-performance lodging, the company offered clean, no-frills accommodations priced between 3,000 and 5,000 yen per night—roughly $150–250 RMB—making it accessible to budget-conscious travelers.
This lean model paid off. By fiscal year 2018, revenue had grown 28% year-over-year, with gross margins consistently above 65%, establishing Red Planet as a standout in Japan’s competitive economy hotel sector.
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However, the pandemic-induced tourism collapse dealt a crushing blow. With travel halted, occupancy rates plummeted. By fiscal year 2022, the company reported a net loss of 1.8 billion yen (~$90 million RMB). Its stock price crashed from a pre-pandemic high of 1,200 yen to under 50 yen, pushing it to the brink of irrelevance.
In April 2024, the company made a decisive move: it sold off nearly all its hotel assets—retaining only one property in Tokyo—raising 5 billion yen (~$250 million RMB). It then rebranded as Metaplanet, signaling a complete exit from hospitality and the beginning of a new era: the Bitcoin treasury strategy.
The Bitcoin Treasury Strategy: A Bold Financial Pivot
On April 26, 2024, Metaplanet announced its first Bitcoin purchase—$6.25 million worth of BTC—marking its official entry into the digital asset space. Since then, the company has pursued an aggressive, highly publicized campaign to accumulate Bitcoin as its primary reserve asset.
CEO Simon Gerovich framed this shift as a response to structural changes in the global financial system. He cited rising geopolitical tensions, unsustainable sovereign debt levels, and the erosion of fiat currencies—particularly the weakening yen due to Japan’s prolonged negative interest rates.
“In this environment, capital is fleeing traditional safe assets like government bonds. Gold is rising, and Bitcoin—a scarce, portable, trustless asset—is gaining strategic recognition.”
Metaplanet’s strategy is clear: prioritize Bitcoin over yen. Rather than holding depreciating cash reserves, the company uses debt financing and equity issuance to continuously acquire BTC. This includes issuing zero-interest bonds, launching stock rights offerings, and securing loans—all funneled directly into Bitcoin purchases.
Key Milestones in Metaplanet’s Bitcoin Accumulation
- April 26, 2024: First BTC purchase ($6.25 million)
- June 24, 2024: Issued 1 billion yen bond for BTC acquisition
- August 6, 2024: Raised 10.08 billion yen via stock rights for Bitcoin
- October 25, 2024: Adopted BTC Yield as a KPI (following MicroStrategy)
- December 18, 2024: Officially launched Bitcoin Treasury Operations as a core business line
- January 28, 2025: Raised $745 million in Asia’s largest equity financing for Bitcoin
- April 1, 2025: Purchased 696 BTC at ~$97,241 each
- May 12, 2025: Acquired 1,241 BTC at ~$14.8 million yen each
- June 23, 2025: Reached 11,111 BTC holdings
- June 30, 2025: Announced issuance of 30 billion yen in zero-interest bonds for further BTC buys
By mid-2025, Metaplanet had become the fifth-largest corporate Bitcoin holder, with its market cap surging from $15 million to over **$2 billion**.
The Impact of Going All-In on Bitcoin
1. Stock Performance and Market Perception
The most immediate effect has been a dramatic turnaround in shareholder value. After adopting the Bitcoin strategy:
- Stock price rose over 1,000% in 2024
- Market cap grew from $15M to $2B
- Ranked as Japan’s top-performing stock in 2024
- Peaked at 1,930 yen on June 18, 2025, up 492% from December 2024
Investors responded positively to transparency and frequent updates on BTC holdings. In Q1 2025, Metaplanet reported record earnings: $6.139 million in revenue (up 943% YoY)** and **$4.151 million in profit, with 88% of revenue coming from Bitcoin options trading.
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2. Global Expansion and Strategic Positioning
Metaplanet is no longer just a Japanese firm—it’s positioning itself as a global player:
- Established a U.S. subsidiary in Miami with $250 million capital
- Joined OTCQX under ticker MTPLF, opening access to U.S. investors
- Partnered with SBI VC Trade for custody and tax-efficient financing
- Appointed Eric Trump to its Strategic Advisory Committee (March 2025)
Its long-term goal? To hold 210,000 BTC by 2027, backed by a planned $5 billion capital injection into its U.S. arm.
Risks and Challenges Ahead
Despite its success, Metaplanet faces significant risks:
🔹 Bitcoin Price Volatility
The company’s balance sheet is directly tied to BTC’s price. At current holdings:
- If BTC drops below $9,396, Metaplanet could face insolvency
- A sharp correction (e.g., Middle East conflict on June 13) can trigger stock sell-offs
- Shareholders face 5x higher risk exposure than direct BTC holders due to premium pricing
🔹 Regulatory Uncertainty
Japan’s Financial Services Agency (FSA) has not finalized accounting rules for corporate Bitcoin holdings. If future regulations require:
- Daily mark-to-market valuation
- Balance sheet adjustments based on BTC price swings
…this could increase financial volatility and breach debt covenants.
🔹 Lack of Operating Business
With only one hotel remaining, Metaplanet lacks revenue diversification. Unlike firms with strong core operations funding BTC buys (e.g., MicroStrategy), Metaplanet relies heavily on capital markets—issuing bonds and shares to fund purchases.
As VanEck’s digital asset chief Matthew Sigel warned:
“Once trading at net asset value, share issuance dilutes rather than enhances value.”
If investor sentiment shifts and the stock trades at or below NAV, further equity raises could erode shareholder value.
Frequently Asked Questions (FAQ)
Q: What was Metaplanet before it became a Bitcoin company?
A: It was Red Planet Japan, an economy hotel chain founded in 2010. It exited the hospitality industry in April 2024 after pandemic-related losses.
Q: How much Bitcoin does Metaplanet hold?
A: As of June 30, 2025, Metaplanet holds 13,350 BTC at an average cost of $97,832 per coin.
Q: Why is Metaplanet buying so much Bitcoin?
A: To hedge against fiat currency depreciation (especially the yen), capitalize on structural macroeconomic shifts, and create long-term shareholder value through a scarce digital asset.
Q: Is Metaplanet profitable?
A: Yes—its Q1 2025 revenue reached $6.14 million (up 943% YoY), with $4.15 million in profit, largely driven by Bitcoin options trading.
Q: What are the main risks for Metaplanet?
A: High exposure to BTC price swings, regulatory uncertainty in Japan, lack of diversified income, and potential shareholder dilution from continuous equity issuance.
Q: Can Metaplanet go bankrupt if Bitcoin crashes?
A: In theory, yes—if BTC falls below ~$9,400 (a 91% drop). However, CEO Simon Gerovich claims even at $2,000/BTC, liabilities would still be covered by BTC holdings.
The Road Ahead
Metaplanet’s transformation is emblematic of a broader trend: companies rethinking their treasury management in a digital-first economy. While its aggressive stance has delivered spectacular returns so far, long-term sustainability depends on market conditions, regulatory clarity, and disciplined capital allocation.
As CEO Gerovich declared:
“In uncertain times, Bitcoin is a safe haven—resilient, borderless, and unstoppable.”
Whether Metaplanet becomes a blueprint for corporate evolution or a cautionary tale will depend on how it navigates the next market cycle.