Metaplanet Inc, a Japanese firm, experiences a surge in stock due to a significant investment of ¥1 billion in Bitcoin.

Metaplanet Inc., a diversified company focused on various sectors including web3 space, has announced its commitment to transition to Bitcoin (BTC) as its core treasury asset. The company has initially pledged JPY 1 billion (approximately $6.56 million) to support this move. This news has caused the stock market of Metaplanet to surge by around 90% in less than 24 hours, reaching ¥36 on Tuesday. Year-to-date, the stock market of Metaplanet has risen by more than 111%.

To facilitate a smooth transition to Bitcoin adoption, Metaplanet is collaborating with Sora Ventures, Mark Yusko from Morgan Creek Capital, and UTXO Management, among others.

The adoption of Bitcoin by MicroStrategy in recent years has demonstrated the tangible benefits of incorporating Bitcoin into a company’s balance sheet, leading global institutional investors to follow suit. The recent approval of spot Bitcoin ETFs in the United States has also contributed to this growing trend. China’s Harvest Global Investment and Southern Fund, two of the country’s largest fund management firms, have also applied to offer spot Bitcoin ETFs.

The increasing adoption of Bitcoin by institutional investors has resulted in a significant decrease in BTC supply on centralized exchanges. Recent on-chain data shows that the supply of Bitcoin on centralized exchanges has reached a multi-year low of approximately 1.7 million. Furthermore, with the upcoming fourth Bitcoin halving scheduled for April 20, which will cut the daily emission of new Bitcoin in half, the flagship cryptocurrency is expected to experience further price appreciation in the coming months.