MetaPlanet CEO: "The First Bitcoin Cycle in Asia Has Already Begun"

The CEO of MetaPlanet diagnosed that a new growth phase has started based on the low accessibility of Bitcoin in the Asian capital markets. He noted that in Asia, where savings are substantial, there is a lack of Bitcoin investment products and publicly listed companies holding Bitcoin, suggesting that early entrants could seize significant opportunities.

At the Bitcoin Magazine event on August 29 (local time), Simon Gerovich, CEO of MetaPlanet, stated, "The previous cycle was Western, and the first Asian cycle has already begun," adding, "The remaining question is who will build it."

CEO Gerovich explained that MetaPlanet has transitioned from a struggling Japanese hotel company post-COVID-19 to a Bitcoin-holding company. The company began purchasing Bitcoin with its remaining cash in April 2024 and currently holds 43,000 BTC, which is the third-largest holding among publicly listed companies worldwide and the largest in Asia.

Despite the drop in Bitcoin prices this year, the company has been buying Bitcoin every quarter. CEO Gerovich explained, "The reason for purchasing Bitcoin was not bravery but because we designed our balance sheet to avoid being overwhelmed even if the price continued to drop from its peak," noting that the cost of the same strategy has decreased due to the price decline.

He mentioned that the number of MetaPlanet shareholders has increased from about 11,000 at the beginning of the strategic shift to 250,000 now. CEO Gerovich attributed the increase in shareholders, even during a period when Bitcoin prices halved, to changes in the cash-holding environment of Japanese households.

He pointed out that for 30 years, holding cash in Japan was considered a rational choice, but that premise has been shaken by the depreciation of the yen and changes in the inflation environment. Japanese households hold approximately $14 trillion in financial assets, with about half sitting in bank deposits that yield almost no returns.

CEO Gerovich assessed that when including assets managed in Korea, Southeast Asia, and Hong Kong, Asia has the largest pool of long-term savings in the world. He stated, "For the first time in a generation, this savings pool is looking for a place to go."

He also noted that regulatory changes are emerging at the same time. He explained that Japan passed a law in July placing Bitcoin under the same legal framework as stocks and bonds, with capital gains tax rates expected to drop from a maximum of 55% to 20%, with implementation targeted for 2027-2028. Hong Kong has established rules for spot ETFs and stablecoins, while Korea is opening up to institutional investors, and Singapore has been operating a licensing system for several years.

However, the investment infrastructure for Bitcoin in Asia is still considered to be in its early stages. CEO Gerovich stated that there are only 20 publicly listed companies holding Bitcoin in Asia, and the total holdings, including MetaPlanet, fall short of one-tenth of the world's largest holding company, Strategy.

He viewed this gap as the biggest opportunity. CEO Gerovich remarked, "The opportunity is not simply that the price of Bitcoin will rise; most capital in Asia cannot buy Bitcoin, and there are only 20 companies and almost no products between the regions with high savings and this asset."

He explained that accessibility constraints affect both individuals and institutions. Ordinary individual investors in Japan typically cannot hold Bitcoin directly through securities accounts, and there are no spot ETFs in Japan, making it difficult for pension funds or bond management accounts to include Bitcoin, which has no interest or priority. He emphasized, "If we create what Asia can buy, capital will flow in."

To this end, MetaPlanet recently conducted two acquisitions over the past ten weeks. The company acquired a licensed securities firm in Japan in June and renamed it MetaPlanet Securities, and last week announced plans for a Nasdaq-listed company, SuperPlanet, which will inject 2,100 BTC from its own holdings. The transaction is expected to close by the end of the fourth quarter.

CEO Gerovich highlighted that the Bitcoin holdings were used as funding for the acquisition of the listed company. He explained, "Bitcoin on the balance sheet is productive capital," and that they are creating a structure to build a unified Bitcoin holding position in both Tokyo and Nasdaq.

In the U.S. market, it was reported that investors purchased $16 billion worth of preferred shares issued by Bitcoin-holding companies over the past 12 months. He noted that this amount represents only 0.01% of the global bond market, indicating that the Bitcoin-based yield product market is still in a very early stage.

CEO Gerovich predicted that Bitcoin-linked yield products based on local currencies will also be needed in Asia. He stated, "This gap will not remain open for long; someone will fill it, and those who move early will achieve very good results."

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