TL;DR
- Metaplanet has acquired an additional 107.91 BTC, bringing the total to over 500 bitcoins.
- The purchase was financed with a $6.8 million loan from MMXX Ventures.
- The strategy has boosted the company’s stock value by 420% since April.
Tokyo-based firm Metaplanet has made a significant new acquisition of 107.91 bitcoins (BTC), bringing its total holdings to over 500 BTC.
The purchase, valued at $6.9 million at an average price of $64,168 per bitcoin, was funded by a $6.8 million loan from MMXX Ventures, a shareholder in the company.
*Metaplanet purchases additional 107.91 $BTC* pic.twitter.com/pPrRBGrJsC
— Metaplanet Inc. (@Metaplanet_JP) October 1, 2024
The purpose of this acquisition is to continue using bitcoin as a strategic reserve asset to protect against yen volatility and Japan’s growing debt.
The company began adopting this strategy in April 2024, when it decided to invest in bitcoin to diversify its assets and mitigate financial risks amid Japan’s public debt and yen instability.
Since its first purchases, which totaled 117.7 BTC, Metaplanet has continued to accumulate bitcoins, consolidating itself as one of the public companies with the largest holdings of this asset in Asia, surpassed only by the Hong Kong-based firm Meitu.
The average purchase price for Metaplanet‘s 500+ bitcoins stands at 9,373,557 yen per bitcoin, or approximately $64,931.
This bitcoin accumulation strategy has had a positive impact on the value of the company’s shares, which have increased by more than 420% since they began their BTC purchases in April, while the value of bitcoin has fallen by 3% in the same period.
Market impact and the Metaplanet vision
The effect of Metaplanet’s bitcoin purchases has not only boosted its stock price but also raised the market capitalization to BTC holdings ratio to a level of 20%, one of the highest among public companies investing in cryptocurrencies.
The surge reflects shareholder confidence in Bitcoin’s ability to serve as a safe haven from local currency fluctuations and Japan’s financial woes.
With this strategy, Metaplanet continues to demonstrate its commitment to the use of digital assets as a fundamental part of its financial strategy.
Despite the drop in the price of bitcoin, the company has managed to increase its share value significantly, which shows that investors perceive this movement as positive for the future of the firm.
Metaplanet continues to position itself as a benchmark in the Asian cryptocurrency market, and its focus on bitcoin could inspire other companies in the region to follow similar strategies in an increasingly uncertain economic environment.
