Japanese investment company Metaplanet has further positioned itself as a key Bitcoin owner after it bought 619.7 Bitcoin at a cost of around $60m on the 23rd of December. Bitcoin price action usually sees some sort of movement when BTC is accumulated by institutions.
This purchase was made when Bitcoin price was trading around $96,000. It is the firm’s biggest single purchase since it started buying the cryptocurrency in May 2024.
As a result of this purchase, Metaplanet now holds 1,762 BTCs which is worth approximately $168 million, and this makes it one of the largest corporate holders of Bitcoin in Asia.
*Metaplanet purchases additional 619.70 BTC* pic.twitter.com/5npflMJ3kW
— Metaplanet Inc. (@Metaplanet_JP) December 23, 2024
Metaplanet’s latest acquisition is nearly four times the size of its previous record purchase of 159.7 BTC on October 28. This strategic move takes the firm a step closer to its objective of managing economic risks in Japan through the use of Bitcoin as an instrument that can protect against yen depreciation.
The median purchase price for this transaction was around $75,600 Bitcoin price per BTC, illustrating the firm’s strategy of buying the asset at good prices.
Since being labeled as “Asia’s MicroStrategy” due to its Bitcoin buying, Metaplanet has continued to build up its BTC holdings through capital markets and revenue-financing. The company’s risky decisions have caused many to liken the firm to MicroStrategy, a US software company that led the charge in Bitcoin adoption by corporations.
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The acquisition also makes Metaplanet as the twelfth largest holder of Bitcoin among public firms based on the latest information. Behind Semler Scientific, a medical technology firm.
During its ongoing strategy development process, Metaplanet has announced the establishment of a new Bitcoin Treasury unit. The firm also intends to use the token to go beyond mere Bitcoin acquisition through loans, equities, and convertible bonds to back its positions.
Metaplanet submitted a filing on the 18th of December this year and said that while it has not offered convertible bonds for the Bitcoin currency, it might do so in the future in order to boost its treasury.
In addition, in order to evaluate the performance of the company’s investment, the company has decided to use the Bitcoin Yield (BTC Yield) as one of the major indicators.
As per the company, the Metaplanet yielded 310 percent in BTC from 1st October to 23rd of December which is way better than the 41.7 percent from July to September.The new KPI will therefore allow the company to measure value created for shareholders from the execution of bitcoin strategy.
The adoption of BTC Yield is also consistent with Metaplanet’s vision of establishing a sustainable business model based on cryptocurrency. To achieve this, the company has adopted financial instruments and clear performance measures to enhance its position as a market leader in Bitcoin whilst meeting the investment risks and returns expectations of investors.
Rising Share Prices and Effects on Bitcoin Price
Metaplanet Ventures has adopted a very aggressive Bitcoin strategy throughout the year and this has caused its stock to rise significantly. The firm’s shares skyrocketed to a record 4,080 Japanese yen last week, as investors’ confidence in the cryptocurrency business remained robust.
However, recent market dynamics led to a decrease in its stock price in the past week. Following the December 23 announcement, the stock value rebounded with a 5% rise.
The firm revealed an intention to collect more than $62 million (9.5 billion yen) through a stock acquisition program to buy more bitcoins in the last month. This decision strengthens the company’s strategy of continuing to accumulate more Bitcoins especially when the market is volatile.
