The Bitcoin Story of Metaplanet: From Hotels to Holding

Author: Token Dispatch, Thejaswini M A

Compiled by: Block unicorn

A company that once operated a couple’s hotel has now positioned itself as a gateway for Japan to Bitcoin, which contains unique Japanese characteristics.

Metaplanet’s transformation from the hotel industry to holding digital assets reads like a boardroom thriller - the protagonist swapped hotel room keys for private keys.

In just over a year, Metaplanet has transformed from a struggling hotel company into the largest publicly traded company holding Bitcoin in Asia, ranking 11th globally.

Although the headlines focus on Bitcoin purchases, the real essence of the story lies in how a traditional Japanese company is responding to regulatory constraints, shareholder skepticism, and market volatility, executing what may be the boldest corporate strategic transformation in recent years.

Origin: A company in search of a target

The story of Metaplanet did not begin with grand ambitions, but with ordinary realities. As a hotel company, it operates hotels throughout Japan.

The business model is very simple: provide accommodation, collect income, and then repeat the cycle.

There is neither revolutionary nor breakthrough.

It’s the kind of stable and predictable business that Japanese companies have excelled at for decades.

However, the company’s financial performance tells a different story. Metaplanet’s stock price has been sluggish for a long time, hotel assets are underperforming, and management is searching for new directions. By early 2024, the company is at a turning point for transformation.

Simon Gerovich, a veteran investment banker, joined Metaplanet with a seemingly absurd vision for hotel guests: to transform the company into Japan’s MicroStrategy.

The Awakening of Bitcoin

Metaplanet’s journey with Bitcoin began in May 2024 when the company announced its first purchase of 117.7 bitcoins, valued at approximately $7.2 million. This marked a strategic transformation, announced with the solemnity of a corporate declaration.

The company has adopted what is known as the “Bitcoin reserve strategy,” positioning cryptocurrency as its primary reserve asset. This decision is accompanied by a comprehensive restructuring of the company’s operations and philosophy.

They now have more Bitcoin than El Salvador.

Imagine that a Japanese hotel company holds more Bitcoin than a country that has made Bitcoin legal tender.

Since the first purchase, Metaplanet has been very stable in accumulating Bitcoin:

May 2024: Additional purchase of 23.35 bitcoins

July 2024: Purchased 20.381 Bitcoins again

August 2024: Increased holdings of 21.88 Bitcoins

September 2024: Multiple purchases, totaling over 100 Bitcoins

December 2024: Holding 1,762 Bitcoins (starting to take it seriously)

Q1 2025: Accumulated 5,034 bitcoins within three months (Full throttle)

May 2025: After purchasing 1,241 bitcoins, the holding amount reaches 6,796 bitcoins.

Their average cost? About $89,492 per Bitcoin. Considering the current price, this timing is quite good.

Metaplanet has now become the largest corporate Bitcoin holder in Japan and is also one of the most important Bitcoin holders among publicly traded companies globally.

The increase in Bitcoin prices in 2024 means that the value of Metaplanet’s holdings has significantly increased, with unrealized gains far exceeding its traditional hotel revenues.

Data for the first quarter of 2025

Record Operating Profit: Revenue of 877 million yen generated a profit of 592 million yen

Bitcoin Revenue: Earned 770 million yen through options premium (accounting for 88% of total revenue)

Hotel operating revenue: only 1.04 billion yen (accounting for 12% of revenue)

Bitcoin holdings: 6,796 coins (1,762 coins by the end of 2024)

Unrealized Bitcoin losses: 7.4 billion yen in the first quarter, but reversed to a profit of 13.5 billion yen by May 12.

What is Bitcoin yield? Simply put, they sell cash-backed Bitcoin put options, collect premiums, and buy more Bitcoin at a lower price when the options are exercised.

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

Although Bitcoin itself performed well during this period, the over 3000% increase of Metaplanet far exceeds the returns of Bitcoin, indicating that investors are willing to pay a premium for the following factors:

Their innovative financing mechanism

Execution of the “BTC Yield” Strategy

Opportunities to gain Bitcoin exposure within the Japanese regulatory framework

The company’s ability to amplify its Bitcoin exposure

Where does the money come from?

Let us explain simply.

1. Dynamic Exercise Price Warrants (The Subtlety)

They sold 210 million “warrants” to investors.

These warrants will only convert to shares when the stock price of Metaplanet rises.

Result: Dilution of shareholders will only occur when everyone makes a profit.

They raised 76.6 billion yen in this way, without issuing at a price lower than the market price.

2. Zero-Coupon Bonds (Free Funds)

They borrow money and pay 0% interest.

Why are some people willing to lend money for free? Because if Bitcoin rises sharply, they have potential for appreciation.

Latest news: Borrowed 3.6 billion yen at 0% interest.

3. Bitcoin Revenue Generation (Let Bitcoin Earn for Itself)

They sell “insurance” for Bitcoin (cash-backed put options).

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

If Bitcoin does not crash, they will retain the options premium.

In the first quarter of 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 each quarter.

All this cash is used directly to purchase Bitcoin.

Positive feedback loop

Use the raised funds to purchase Bitcoin.

Bitcoin price rises → stock price rises.

Rising stock prices → More warrants can be sold.

Use warrant funds to buy more Bitcoin.

Repeat the above process.

Why does this work?

They only issue new shares (warrants) when the stock price rises.

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

They make money from the volatility of Bitcoin (options trading).

Everything feeds back into the cycle of buying more Bitcoin.

If Bitcoin crashes and stock prices fall, the entire mechanism will cease to operate. No one will buy warrants, bonds become difficult to sell, and they will also be unable to fund purchases for more Bitcoin.

When asked about concerns regarding stock prices, Grovich’s response was: “We are just getting started.” Given that their current holdings exceed those of an entire country, their confidence is undoubtedly strong.

Metaplanet also announced plans to issue another $21 million bond to the EVO FUND. This is their 14th bond issuance to date. These bonds? Naturally, they are zero-interest, because who needs that kind of return when you have Bitcoin?

The company is establishing a wholly-owned subsidiary, Metaplanet Treasury Corp, in Florida, planning to raise $250 million to expand its bitcoin purchasing power outside of Japan. Clearly, one country is no longer sufficient to satisfy their purchasing appetite.

Comparison with MicroStrategy

Metaplanet has not engaged in hedging operations. They do not have a strategy of 50% Bitcoin and 50% hotels, but rather are fully betting on the orange currency (Bitcoin) strategy. Their entire business model now is:

raise funds

Buy Bitcoin

Profiting from Bitcoin volatility

Repeat the above process

Metaplanet’s strategy is clearly inspired by MicroStrategy’s transformation under the leadership of Michael Saylor. However, this Japanese company operates in a different regulatory and cultural environment, which presents both opportunities and limitations.

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

In comparison, Metaplanet achieved its accomplishments in 3 months, while MicroStrategy took 19 months to complete. Their market net asset value growth rate is 3.8 times faster than that of MicroStrategy.

Unlike MicroStrategy, which benefits from the mature U.S. capital markets and a sophisticated convertible bond market, Metaplanet must cope with Japan’s more conservative financial environment. Japan’s corporate bond market is underdeveloped, and retail investors may have more limited interest in leveraged Bitcoin investments.

Metaplanet also benefits from its first-mover advantage in the Japanese market. As a major Bitcoin agency among listed companies in Japan, it attracts domestic and foreign capital seeking exposure to Bitcoin in Japan.

The company’s hotel business background also provides a narrative buffer. Unlike purely Bitcoin companies, Metaplanet retains operational businesses that can theoretically support the company if the Bitcoin strategy fails. This may offer some comfort to more conservative investors.

Our viewpoint

The transformation of Metaplanet represents the profound significance of corporate evolution in the digital age. This is a company that recognizes the impending obsolescence of traditional business models and has decisively made a radical bet on an emerging asset class.

Metaplanet essentially picked up MicroStrategy’s script and optimized it for the Japanese market. MicroStrategy issued convertible bonds, while Metaplanet pioneered dynamic exercise price warrants that only dilute shareholders when the stock price rises. What’s the result? A more efficient Bitcoin accumulation engine favored by the advantages of Japanese regulation.

This bold move is eye-catching. Most businesses undergo gradual changes—retailers shifting online, media companies embracing streaming. However, Metaplanet has completely abandoned its core competencies, betting the company on an asset that did not exist at the time of its establishment.

The success or failure 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 will essentially transform into a leveraged firm that capitalizes on Bitcoin’s growing popularity.

If Bitcoin stagnates or faces regulatory pressure, Metaplanet’s strategy could lead to catastrophic consequences. The company would be left with only a shrinking hotel business, and its cryptocurrency holdings would face substantial unrealized losses.

It is certain that Metaplanet has created a template for companies to adopt Bitcoin, which other companies will study—whether as inspiration or a warning. 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 transformation. The management of Metaplanet bets that Bitcoin represents the future of value storage. Time will tell whether they are visionary or acting recklessly.

But in an era where stagnation often means regression, a company that dares to take all risks to uphold its beliefs exhibits a commendable courage. Whether this transformation leads to prosperity or danger remains one of today’s most captivating corporate stories in Japan.