From Hotels to Bitcoin: How Metaplanet Achieved a 400x Valuation Surge

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In just over a year, Metaplanet—a once-struggling Japanese budget hotel operator—has transformed into one of the most talked-about companies in the crypto space. With its market capitalization soaring from $13 million to $5.5 billion, the company has emerged as Asia’s largest corporate holder of Bitcoin and the tenth-largest globally. This meteoric rise wasn’t fueled by travel recovery, but by a bold strategic pivot into digital assets.

This is the story of how a pandemic-hit hospitality business reinvented itself through cryptocurrency, inspired by a U.S. tech firm’s success—and whether this transformation represents visionary business strategy or high-stakes speculation.

The Pandemic That Sparked a Revolution

Metaplanet was originally known for operating Red Planet Japan, a chain of affordable urban hotels targeting budget-conscious travelers. Founded in 2010 by Simon Gerovich, a former Goldman Sachs derivatives trader, the company expanded steadily across Japan and parts of Southeast Asia.

At its peak, Red Planet employed over 120 people and managed dozens of properties. But when the global pandemic brought international travel to a halt in 2020, hotel occupancy plummeted. Revenue dried up, stock prices crashed, and the future looked bleak.

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As Gerovich later shared in interviews, the crisis forced leadership to rethink their entire business model. With deep roots in finance, he began exploring blockchain technology and digital assets—not just as investments, but as potential pillars for a new kind of company.

Initial efforts focused on blockchain consulting and NFT development services. But these ventures were small-scale and didn’t move the needle financially. What changed everything was watching an American company make headlines with a radical Bitcoin strategy.

The MicroStrategy Blueprint

The turning point came with MicroStrategy, a U.S.-based business intelligence firm that began aggressively buying Bitcoin in 2020 after its stock stalled. Under CEO Michael Saylor’s leadership, the company positioned itself as a “Bitcoin treasury,” using corporate cash reserves to accumulate BTC at scale.

The market responded enthusiastically. MicroStrategy’s stock surged, drawing attention from institutional investors and retail traders alike. More importantly, it proved that a traditional company could rebrand itself around Bitcoin and unlock massive shareholder value—even without direct crypto revenue streams.

Gerovich saw an opening.

In April 2024, Metaplanet announced it would sell off nearly all its hotel assets, keeping only one flagship property in Tokyo. That remaining hotel was rebranded as the “Bitcoin Hotel”—complete with crypto payment options, educational displays about blockchain, and themed guest experiences.

All proceeds from the asset sales—totaling hundreds of millions of yen—were funneled into Bitcoin purchases. The company reported an average acquisition cost of $90,000 per BTC and now holds 8,888 bitcoins, valued at approximately $829 million based on current prices.

Market Reaction: Euphoria Meets Skepticism

The results were dramatic. Within 12 months, Metaplanet’s stock price skyrocketed by 1,700%, briefly making it one of the most actively traded equities on Japanese exchanges. Investors flocked to the stock, drawn by the narrative of transformation and the allure of indirect Bitcoin exposure through a publicly listed entity.

But not everyone is convinced.

Analysts at Singapore-based 10x Research have warned that Metaplanet’s current valuation implies Bitcoin must eventually reach nearly $600,000 per coin—five times higher than today’s levels—to justify its price-to-book ratio. Such expectations suggest significant speculative premium baked into the stock.

Moreover, unlike MicroStrategy—which still generates steady software revenue—Metaplanet has largely abandoned its original business. Its remaining hotel operation contributes negligible income compared to its crypto holdings. This makes the company extremely sensitive to Bitcoin price swings.

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If Bitcoin enters a prolonged bear market or regulatory pressures increase globally, Metaplanet could face liquidity challenges. There are no diversified revenue streams to fall back on.

A Bold Vision for the Future

Despite the risks, Gerovich remains undeterred. He has unveiled an ambitious plan to raise $5.4 billion by 2027—funds intended to purchase an additional 210,000 bitcoins, roughly 1% of Bitcoin’s total supply cap.

His goal? To cement Metaplanet’s status as Asia’s answer to MicroStrategy—a pure-play Bitcoin investment vehicle disguised as a tech-forward corporation.

To support this vision, the company is expanding its blockchain-related services, including digital wallet integration and enterprise advisory for firms considering crypto treasuries. While still nascent, these initiatives may help build long-term credibility beyond mere speculation.

Frequently Asked Questions (FAQ)

Q: What triggered Metaplanet’s shift from hotels to Bitcoin?
A: The collapse of tourism during the pandemic severely impacted Metaplanet’s core business. Facing declining revenues and investor pressure, CEO Simon Gerovich pivoted toward digital assets after being inspired by MicroStrategy’s successful Bitcoin investment strategy.

Q: How much Bitcoin does Metaplanet currently hold?
A: As of mid-2024, Metaplanet owns 8,888 bitcoins, acquired at an average price of $90,000 each. This positions it among the top ten corporate holders worldwide.

Q: Is Metaplanet profitable from its Bitcoin holdings?
A: Not directly. While unrealized gains boost its balance sheet value, the company doesn’t recognize profit until it sells BTC. Its only operational income comes from a single retained hotel property.

Q: Could Metaplanet’s strategy fail?
A: Yes. If Bitcoin prices stagnate or decline, investor confidence may wane. Without diversified income sources, the company lacks financial resilience during market downturns.

Q: Why is Metaplanet keeping one hotel open?
A: The Tokyo “Bitcoin Hotel” serves both as a branding exercise and a real-world showcase for crypto adoption—accepting payments in BTC and educating guests about blockchain technology.

Q: What are Metaplanet’s long-term goals?
A: The company aims to acquire up to 210,000 more bitcoins by 2027 and become Asia’s leading corporate Bitcoin holder—a strategic bet on long-term digital asset appreciation.

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