Metaplanet Joins Bitcoin for Corporations Initiative to Boost Global Adoption

• Metaplanet joins Bitcoin for Corporations to boost Bitcoin adoption and reduce exposure to the depreciating yen.
• Inspired by MicroStrategy, Metaplanet and Semler Scientific saw significant stock rises after embracing Bitcoin.
• Metaplanet’s stock soared 980% post-Bitcoin purchase, highlighting its strategic shift and financial revitalization.

The Japanese investment company Metaplanet has declared it a founding member of the Bitcoin for Corporations initiative. This initiative, which MicroStrategy and Bitcoin Magazine started, intends to increase Bitcoin’s acceptance and usage globally. The program facilitates global Bitcoin integration and adoption by providing corporate leaders with strategic collaborations.

Bitcoin Adoption Surges with Traditional Players

The growing presence of traditional players has contributed to the boom in Bitcoin acceptance this year. A company that supports Bitcoin, Metaplanet, said in a press statement on July 30 that it has decided to join the project.

Simon Gerovich, the CEO of the company, stressed that Bitcoin might reduce exposure to the rapidly declining Japanese yen and strengthen its balance sheet. They therefore set out to gradually accumulate as much Bitcoin as they could.

Transformation Inspired by MicroStrategy

Metaplanet’s move into Bitcoin was inspired by MicroStrategy’s Bitcoin playbook. Besides, Metaplanet’s executives acknowledged that they were beginning to show characteristics of a zombie company. 

These companies earn just enough to continue operating and service debts but have no excess capital for growth and are often close to insolvency. Gerovich recalled the early struggles at Metaplanet, where he had to clean up the balance sheet, get rid of staff, and pay down debt.

However, after fully embracing Bitcoin, Metaplanet saw a rise in its stock price, up by 980% since its first Bitcoin purchase on April 23. Similarly, Semler Scientific, another company following MicroStrategy’s playbook, saw its share price rise by 40% since its first Bitcoin purchase on May 28 despite being down 3.6% on its Bitcoin investment.

Embracing Bitcoin’s Volatility

Both Metaplanet and Semler Scientific have embraced the volatility that comes with Bitcoin adoption. Semler Scientific’s chairman, Eric Semsler, mentioned at the Bitcoin Conference in Nashville that their company had not been performing well in the stock market despite being cash-rich. This realization led them to follow MicroStrategy’s strategy, which they deemed the best use of their cash.

Moreover, Metaplanet hopes the increased liquidity from Bitcoin adoption will allow them to offer a convert issuance soon. The company’s commitment to Bitcoin reflects a broader trend of traditional companies integrating Bitcoin into their financial strategies to leverage its potential as an apex monetary asset.