Strategy began accumulating Bitcoin (BTC) on August 10, 2020 as part of its corporate finance strategy. Since then, the company has made BTC its primary reserve asset and a cornerstone of its business identity.
It currently holds 640,418 BTC with an average cost of nearly $69,000 per unit. This policy significantly increased the value of the stock and improved the company’s position. As one of the main institutional references of the ecosystem.
Michael Saylor, the company’s co-founder and CEO, supports the idea that companies can protect their assets from financial inflation by replacing traditional financial assets with Bitcoin.
His position inspired new companies, including Japan’s Metaplanet. It uses a model very similar to Strategy. The media even calls it the “Japan Strategy.”
Metaplanet is a Tokyo-based company that announced in April 2024 that it would integrate Bitcoin as a key part of its corporate balance sheet. In addition, we are developing business lines related to digital asset management and performance. The same goes for ecological education and outreach.
So far this year, This entity has acquired over 29,000 BitcoinsAccording to BitcoinTreasuries data, it has accumulated 30,823 BTC to date, making it the fourth publicly traded company with the largest exposure to this asset worldwide.
Metaplanet’s decision has been noted by Michael Thaler, who recently expressed his opinion on the Japanese company’s progress.
Speaking at the first Bitcoin Government Bond Unconference in New York last September, Saylor said, “I think Metaplanet will be the most valuable company in Japan.” and he added Feeling direct competition with teams from Japanese companies:
Every day I wake up and think, “Damn, I have to go to work or the people on Metaplanet are going to overtake me.” I’m sure Simon (Gerovich) and Dylan (LeClair) are planning something big.
Michael Saylor, Founder and CEO of Strategy.
These words convey not only admiration and respect; Recognition of rivalry in which Metaplanet represents strategy In the field of corporate Bitcoin accumulation.
Optimism and technical warnings
Financial analyst Adam Livingston explains the metaplanet model Like a unique asymmetrical machine. “Being pessimistic about metaplanet over the long term is like betting on a black hole that looks small from a distance,” he said.
He added, “They built a machine that was always going long on Bitcoin and short on fiat.” Metaplanet is directly benefiting from currency creation and the weaker yen.
«Every time Japan prints a yen, Metaplanet’s balance sheet strengthens. “Every time Bitcoin halves, its collateral base adjusts, while its debt evaporates in real terms,” he explains.
Livingston said that Metaplanet’s activities are Where fiat currency “melts” and Bitcoin increases“This is the purest form of financial arbitrage in modern history.”
“You can’t compete with companies that benefit from the collapse of the laws of thermodynamics and the Keynesian model. You have to stay ahead of the curve,” he concluded.
But there are also risks. Yan Dominguez, a Venezuelan cryptocurrency consultant, told CriptoNoticias that the strategies of companies like Strategy and Metaplanet are innovative. But he is not immune to adversity.
“We think this is an interesting and novel plan, but it is risky given that we are still in the early stages of institutional adoption. Fluctuations in the price of Bitcoin could at some point trigger strong corrections that directly impact the financials of these companies,” he explains.
Dominguez cautions that the sustainability of these strategies depends on risk management and internal financial structures.
“These companies will need to enable overcollateralization and financial planning mechanisms to prevent their assets and ongoing operations from being compromised,” he commented.
The expert also said that although the market is positive about the correlation between the price of Bitcoin and the value of these companies’ stocks, How they would react in a bearish scenario remains to be proven.
“There is uncertainty as to whether these companies can withstand sharp price corrections. For now, these financial models using Bitcoin are in their infancy and, while innovative, are financially risky,” he asserts.
Indeed, since Strategy started its accumulation policy, Its stock price soared. As seen in the following chart provided by TradingView, MSTR stock has risen 1,900% since 2020 when I started hoarding Bitcoin.
This showed investors that despite the high volatility, companies can benefit from having exposure to Bitcoin. Metaplanet is trying to replicate that effect in Japan.adapting strategies to the economic and financial environment.
In fact, the company’s stock price has also recovered significantly. These have increased by over 2,800% since April 2024when they started accumulating Bitcoin. In the following graph:
competition is alive
Michael Saylor sees Metaplanet as a competitor to Strategy in terms of enterprise Bitcoin adoption. The Japanese company is replicating the formula that helped American companies pioneer it: replacing cash with Bitcoin and using financial products to expand reserves.
Saylor’s enthusiasm therefore leaves a clear message that the corporate finance model in Bitcoin is no longer an American singularity. Expansion into Asia led by Metaplanet; This marks a new phase in the relationship between companies, reserves and the world’s largest digital asset.
Time and the strengths of both companies will determine whether Strategy and Metaplanet can truly consolidate their position as major institutional investors in the Bitcoin market.
(Tag translation) Bitcoin (BTC)
