Metaplanet, a Japanese company, has become the 30th largest corporate bitcoin holder, even though it holds much less than MicroStrategy.
On June 11, Metaplanet announced it had bought 23.351 BTC for about $1.59 million, bringing its total bitcoin holdings to 141.07 BTC, worth $9.6 million. This pro-bitcoin move led to a significant 10.8% increase in the price of Metaplanet’s shares.
Metaplanet: Asia’s MicroStrategy Makes Strategic Bitcoin Acquisitions
The Tokyo-based company, known as Asia’s MicroStrategy, announced that with its latest purchase, its bitcoin holdings were acquired at an average price of 10.27 million Yen, equivalent to about $65,365. This recent acquisition adds to previous purchases of 97.85 BTC on April 23 and 19.87 BTC on May 10. Despite holding only a fraction of BTC compared to giants like MicroStrategy, Metaplanet is now the world’s 30th largest corporate holder of the asset.
Following the announcement of the new BTC acquisition, Metaplanet’s stock surged by about 10%. Since revealing its bitcoin investment strategy on April 9, Metaplanet’s stock has soared by approximately 368%, climbing from a low of 19 Yen to the current 89 Yen. These increases indicate strong investor approval of the company’s move into crypto.
In explaining its BTC strategy, Metaplanet highlighted several factors behind its decision. Bitcoin serves as a good hedge against Japan’s rapidly increasing international debt burden. As of early 2024, Japan’s debt-to-GDP ratio was 261, the highest among developed countries. Additionally, bitcoin provides a significant hedge against the rapid depreciation of the Yen, which has fallen by about 35% against the USD since January 2021. In contrast, BTC has appreciated over 200% against the Yen in the past year alone. Metaplanet aims to reduce its exposure to the weakening Yen and capitalize on BTC’s potential.
Metaplanet’s Bitcoin Strategy Yields Profits and Promises Expansion
As Bitcoin hovers slightly above $67K, Metaplanet’s bitcoin exposure has resulted in an unrealized profit of about 2.5%, despite BTC trading a few thousand dollars below its all-time high of $73K.
Metaplanet is committed to continuing the expansion of its bitcoin reserves. On May 13, the company announced plans to use a “wide range of capital markets instruments” to increase its BTC holdings, following the strategy of MicroStrategy.
Corporate investors like MicroStrategy are also seeing significant returns. According to Saylor Tracker, MicroStrategy has an unrealized profit of nearly $6.5 billion from its bitcoin investments.
This trend is not limited to Metaplanet and MicroStrategy. Recently, Canada’s DeFi Technologies added 110 BTC to its treasury, resulting in an 11% increase in its stock prices.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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