Metaplanet's Bitcoin Story: From Hotel to Holding

Author: Token Dispatch, Thejaswini MA, Block unicorn

A company that once operates a couple hotel now positions itself as Japan's portal to Bitcoin , which contains unique Japanese characteristics.

Metaplanet's journey from hotel industry to holding digital assets reads like a board thriller—the protagonist switches from a door key to a private key.

In just over a year, Metaplanet has transformed from a troubled hotel company to Asia 's largest Bitcoin-held public company, ranking 11th in the world .

While the headlines focus on Bitcoin purchases, the real core of the story lies in how a traditional Japanese company responds to regulatory restrictions, shareholder scepticism and market volatility, executing what might be the boldest corporate strategic transformation in recent years.

Origin: A company looking for a target

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

The business model is simple: provide accommodation, collect income, and then cycle through.

That is, it is not revolutionary nor breakthrough.

It's just the stable, predictable business that Japanese companies have been good 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 have performed poorly, and management is looking for new directions. By early 2024, the company has come to reinvent.

Simon Gerovich, an investment banking veteran, joined Metaplanet with a seemingly absurd vision for hotel guests: transforming the company into Japan's MicroStrategy.

Bitcoin’s Awakening

Metaplanet’s Bitcoin journey began in May 2024, when the company announced its first purchase of 117.7 bitcoins, worth approximately $7.2 million. This is a strategic transformation, announced with a solemn attitude like a corporate declaration.

The company has adopted what is called the "Bitcoin Reserve Strategy" to position cryptocurrency as its corporate main reserve asset. This decision was accompanied by a comprehensive restructuring of the company's operations and philosophy.

They now have more bitcoins than El Salvador.

Think about it, a Japanese hotel company owns more Bitcoin than a country that defines Bitcoin as a fiat currency.

Metaplanet has been very stable in terms of Bitcoin accumulation since its first purchase:

• May 2024: 23.35 additional Bitcoin purchases

• July 2024: Buy 20.381 Bitcoins again

• August 2024: Increased holdings of 21.88 Bitcoins

• September 2024: Multiple purchases, totaling more than 100 Bitcoins

• December 2024: Positions reached 1,762 Bitcoins (start to take them seriously)

• First quarter of 2025: Increased holdings of 5,034 Bitcoins within three months (completely put in the effort)

• May 2025: After purchasing 1,241 bitcoins, the holding volume reached 6,796

What is their average cost? Each Bitcoin is about $89,492. Considering the current price, this time is pretty good.

Metaplanet has now become Japan's largest corporate Bitcoin holder and one of the most important Bitcoin holders among listed companies around the world.

The rise in Bitcoin prices in 2024 means that Metaplanet's holdings have increased significantly, bringing unrealized returns far exceeding its traditional hotel revenue.

First quarter data for 2025

• Record operating profit: 877 million yen revenue brought 592 million yen profit

• Bitcoin generates revenue: 770 million yen through option premium (88% of total revenue)

• Hotel operating revenue : only 104 million yen (12% of revenue)

• Bitcoin Holdings: 6,796 (1,762 by the end of 2024)

• Unrealized Bitcoin Loss: 7.4 billion yen in the first quarter, but reversed to 13.5 billion yen gains by May 12

What is Bitcoin revenue generation? Simply put, they sell cash-secured Bitcoin put options, charge a premium, while buying more Bitcoin at a lower price when the option is executed.

What are their stock prices? It has risen 3,000% since its start of its Bitcoin journey. Meanwhile, traditional hotel stocks may be struggling to recover from the trough of 2020.

While Bitcoin itself performed well during this period, Metaplanet's gains of more than 3000% far outweighed Bitcoin's returns, indicating investors are willing to pay a premium for:

• Their innovative financing mechanism

• Implementation of the “BTC rate of return” strategy

• Opportunities to gain Bitcoin exposure within Japan’s regulatory framework

• The ability of companies to amplify Bitcoin exposure

Where does the money come from?

Let's briefly explain.

1. Dynamic strike price warrants ( exquisite)

• They sold 210 million "warrants" to investors

• These warrants will only be converted into shares when the Metaplanet stock price rises

• Result: Shareholders are diluted only when everyone makes money

• They raised 76.6 billion yen in this way and did not issue it at a price below the market price

2. Zero-interest bonds (free funds)

• They borrow money and pay 0% interest

• Why are some people willing to borrow money for free? Because if Bitcoin rises sharply, they have potential room for growth

• Latest news: 3.6 billion yen borrowed at 0% interest

3. Bitcoin generates income (let Bitcoin make money by itself)

• They sell Bitcoin’s “insurance” (cash-guaranteed put options).

• If Bitcoin plummets, they are forced to buy more (that's exactly what they want).

• If Bitcoin does not plummet, they reserve the option premium.

• In the first quarter of 2025, 88% of revenue came from this strategy.

4. Hotel business cash flow

• They still own some hotels, generating 104 million yen per quarter.

• All this cash is used directly to purchase Bitcoin.

Positive feedback loop

1. Buy Bitcoin with the funds raised.

2. Bitcoin price rises → stock price rises.

3. The stock price is rising → More warrants can be sold.

4. Buy more Bitcoin with warrant funds.

5. 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 interest bonds).

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

• Everything is fed back into the loop of buying more bitcoins.

If Bitcoin plummets and the stock price falls, the entire mechanism will stop working. No one will buy warrants, bonds become hard to sell, and they can’t fund more Bitcoin purchases.

When asked about stock price concerns, Grovic responded: "We're just starting out." Given that their current holdings have exceeded the entire country, there is no doubt that their confidence is strong.

Metaplanet also announced plans to issue another $21 million bond to EVO FUND. This is their 14th bond issuance so far. These bonds? Of course, there is zero interest, because who still needs this kind of income when you have Bitcoin?

The company is setting up a wholly owned subsidiary, Metaplanet Treasury Corp, in Florida, with plans to raise $250 million to expand its Bitcoin purchasing capability outside of Japan. Obviously, a country is no longer enough to satisfy their desire to buy.

Comparison with MicroStrategy

Metaplanet does not hedge operations. They are not a 50% Bitcoin, 50% hotel strategy, but are betting on the orange currency (Bitcoin) strategy. Their entire business model is now:

1. Raise funds

2. Buy Bitcoin

3. Generate revenue from Bitcoin fluctuations

4. Repeat the above process

Metaplanet’s strategy is clearly inspired by MicroStrategy’s transformation under Michael Saylor. However, the Japanese company operates in different regulatory and cultural environments, which brings both opportunities and restrictions.

Metaplanet introduced their own key performance indicators (KPIs), called “BTC yields”—a measure of how Bitcoin holdings per share grow over time. The first quarter of 2025 showed a 170% BTC yield. This means that despite the company issuing more shares, the amount of Bitcoin held by shareholders per share has increased by 170%.

By comparison, the achievements Metaplanet achieved in 3 months took MicroStrategy 19 months to complete. Their market net asset value has grown 3.8 times faster than MicroStrategy.

Unlike MicroStrategy, MicroStrategy benefits from the mature U.S. capital market and complex convertible bond markets, while Metaplanet must deal 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 investment.

Metaplanet also benefited from being the first to make arrangements in the Japanese market. As the main Bitcoin proxy among Japanese listed companies, it attracts capital at home and abroad seeking Japanese Bitcoin exposure.

The company's hotel business background also provides a narrative buffer. Unlike purely Bitcoin companies, Metaplanet retains operations and can theoretically support the company when the Bitcoin strategy fails. This may provide some comfort to more conservative investors.

Our Views

Metaplanet's transformation represents the profound significance of the evolution of enterprises in the digital age. This is a company that realizes that the traditional business model is about to be outdated, decisively putting radical bets on an emerging asset class.

Metaplanet essentially picked up MicroStrategy's script and optimized it for the Japanese market. MicroStrategy issues convertible bonds, while Metaplanet pioneers dynamic strike warrants that dilute shareholders only when the stock price rises. What is the result? A more efficient Bitcoin accumulation engine and favored by Japan's regulatory advantages.

This boldness is eye-catching. Most business transformation involves incremental change – retailers turn online, media companies embrace streaming. And Metaplanet completely abandoned its core competitiveness and bet on an asset that did not exist at the time of its establishment.

The success or failure of this strategy depends largely on Bitcoin’s long-term trajectory. If Bitcoin continues to be adopted by institutions and governments, Metaplanet’s early positioning may prove visionary. The company will essentially transform into a leveraged company that takes advantage of Bitcoin penetration.

Metaplanet's strategy could have catastrophic consequences if Bitcoin stagnates or faces regulatory suppression. The company will have only one shrinking hotel business, and its cryptocurrency holdings will also face huge unrealized losses.

To be sure, Metaplanet has created a template for businesses to adopt Bitcoin that other companies will research—whether as an inspiration or warning. In a world where traditional business models are constantly being subverted, perhaps the most rational strategy is to completely embrace this subversion.

Sometimes, survival requires not only adaptation, but a complete transformation. Metaplanet’s management bets on Bitcoin represent the future of store of value. Time will prove whether they are far-sighted or reckless.

But in an era where stagnation often means regression, a company dares to stick to its beliefs at all risks, and has an admirable courage. Is this transformation leading to prosperity or danger still the most fascinating corporate story in Japan today