Metaplanet introduces Bitcoin yield, shareholders enjoy stock acquisition rights, stock price has surged more than fourfold

A Japanese conglomerate company, Metaplanet, originally started as a hotel business, is following in the footsteps of MicroStrategy by introducing "Bitcoin Yield" (BTC Yield) as an indicator. Benefiting from tax advantages, the company's stock price has surged by 456% since its transformation. Shareholders are also enjoying stock acquisition rights, directly benefiting from the accumulated Bitcoin strategy.

Metaplanet Introduces "Bitcoin Yield" BTC Yield

Metaplanet announced the introduction of the key performance indicator "Bitcoin Yield" BTC Yield, formulated by MicroStrategy. This metric calculates the amount of Bitcoin held per share by diluting the total number of shares outstanding to include all actual shares of common stock and any additional shares generated through the conversion of all convertible notes, exercise of all stock options, and settlement of all restricted and performance stock units. It does not consider the price fluctuations of Bitcoin but is designed from a shareholder's perspective to supplement investors' understanding and decisions on purchasing Bitcoin through the issuance of additional common stock or instruments convertible into common stock.

As shown in the table below, the BTC Yield for the third quarter is 41.7%, reaching as high as 116.4% as of October 25 in the fourth quarter.

Stock Acquisition Rights Issued, Shareholders Benefit from Bitcoin Accumulation Strategy

The document mentions Metaplanet's capital activities since April of this year, including the issuance of the 11th series of Stock Acquisition Rights. On August 6, 2024, Metaplanet distributed Stock Acquisition Rights to all shareholders at no cost, with an exercise price of 555 yen per share, raising 10.045 billion yen, allowing shareholders to directly participate in Metaplanet's Bitcoin accumulation strategy.

By October 25, all shareholders had exercised the conversion, doubling Metaplanet's share capital directly from 18,169,218 to 36,268,334 shares. Concurrently, Metaplanet's stock price rose from 596 yen on August 6 to 1,058 yen on October 25, surely leaving shareholders satisfied!

Benefiting from Tax Rate Advantage, Metaplanet Skyrockets by 456%

In Japan, taxation on cryptocurrency trading mainly comes from capital gains and income, with high and complex tax rates. Capital gains from cryptocurrencies are considered "miscellaneous income" and are subject to individual income tax rates ranging from 5% to 45%, plus an additional 10% local tax. This means that for high-income individuals, over half of their profits could be taxed. In contrast, trading stocks incurs only a 15% national tax and a 5% local tax.

Why does Japan's cryptocurrency tax system benefit Metaplanet's stock price?

Recently, the Democratic Party of Japan (DPP) proposed a tax reform plan to reduce the capital gains tax on cryptocurrencies to 20%. However, the implementation of this policy remains to be seen.

After Metaplanet's official transformation on April 8, comparing its stock price with Bitcoin and MicroStrategy, the outstanding performance of Metaplanet is evident:

• Metaplanet: +456.84%
• MicroStrategy: +55.91%
• Bitcoin: -5.46%