What made Metaplanet's stock price soar 4,800%?

Author: Christopher Tepedino, CoinTelegraph; Translated by: Tao Zhu, Golden Finance

Shares have soared over the past year as Metaplanet continues to add bitcoin to its vaults, imitating Michael Saylor's Strategy (formerly MicroStrategy).

According to Bloomberg, the company 's stock price has risen 4,800% in the past 12 months as of February 10, nearly a year after the company announced its Bitcoin funding strategy in April 2024.

Metaplanet shares have risen over the past year. Source: Bloomberg

According to Metaplanet, the company had acquired 1,762 BTC worth approximately $171 million as of January 28. The company plans to acquire up to 21,000 BTC by the end of 2026, meaning it will own one thousandth of all Bitcoins ever. Metaplanet recently achieved its first operating profit in seven years with the help of BTC purchases.

The company is following in the footsteps of Strategy, which has been adding BTC to its vault since August 2020. Since then, Saylor's company shares have soared from $13.49 to $332.60 at the time of writing. Other companies, such as Semler Scientific, have adopted this strategy, which can sometimes trigger enthusiasm and stock price increases, and sometimes not.

According to its Bitcoin plan, the number of Metaplanet shareholders grew 500% in 2024, with 50,000 people or entities investing in the company. According to Stock Analysis, its market value also grew by more than 6,300% during the same period.

Observers increasingly see Bitcoin as a powerful alternative to holding cash on the balance sheet, as well as a tool to hedge inflation. At least 16 states in the United States have introduced legislation to launch BTC reserves, and several countries, including the United States and Czechoslovakia, are also exploring the use of BTC as a reserve asset.

According to CoinGecko, at least 32 publicly traded companies hold BTC on their balance sheets. Some of them are native cryptocurrency companies such as miners, while others are more traditional companies.

Bitcoin has risen 133% in the past 52 weeks, partly due to the push from these tailwinds. According to CoinMarketCap, BTC has a market dominance of 60.5%, and has been on an upward trend since reaching a low of 38% in December 2022.