TL;DR
- Metaplanet’s Bitcoin Accumulation: Metaplanet, a Japanese company often compared to MicroStrategy, recently acquired an additional 21.88 Bitcoins, bringing its total holdings to 225.611 BTC (worth $14.57 million).
- Following MicroStrategy’s Playbook: Like MicroStrategy, Metaplanet strategically embraced Bitcoin, resulting in substantial gains. Its stock price surged by 158% after adding Bitcoin to its portfolio, mirroring MicroStrategy’s success.
- Future Outlook: Despite geographical restrictions for U.S. investors, plans to tokenize Metaplanet shares on the Bitcoin layer-2 network Liquid suggest continued BTC accumulation.
Publicly traded Japanese company Metaplanet, sometimes referred to as the MicroStrategy of Asia, recently increased its Bitcoin holdings. On Tuesday, the company purchased an additional 21.88 Bitcoins, valued at ¥200 million ($1.4 million), at an average price of ¥9.14 million ($57,600) per coin.
*Metaplanet purchases additional 21.88 $BTC* pic.twitter.com/zCXzKFudog
— Metaplanet Inc. (@Metaplanet_JP) July 16, 2024
This latest purchase brings Metaplanet’s total Bitcoin reserves to 225.611 BTC, equivalent to $14.57 million at the current market price of $64,599.2 per Bitcoin. The company had previously acquired 42.466 Bitcoins on July 8, worth ¥400 million ($2.5 million) at the time.
Metaplanet has been strategically accumulating Bitcoin since April, aiming to diversify its treasury assets away from the weakening Japanese yen. The yen has been impacted by persistently low interest rates in Japan, prompting Metaplanet to view cryptocurrencies as a hedge against inflation and economic uncertainty.
Metaplanet’s Corporate Innovation
In May, Metaplanet announced significant adjustments to its treasury operations, positioning itself as a local pioneer in corporate asset management. The company’s move to embrace Bitcoin mirrors the approach taken by MicroStrategy, the largest corporate holder of Bitcoin globally.
Tokyo Stock Exchange Listing and Tokenization Plans
U.S. investors currently face limitations in acquiring Metaplanet shares due to its listing on the Tokyo Stock Exchange. However, there are plans to bridge this gap.
Arnab Naskar, co-founder of STOKR, a security token platform, intends to tokenize Metaplanet shares on the Bitcoin layer-2 network Liquid, similar to how MicroStrategy shares were tokenized.
Following MicroStrategy’s Success
Metaplanet’s aggressive Bitcoin buying spree has paid off. Like MicroStrategy, which now boasts a valuation exceeding $14 billion, Metaplanet has seen substantial gains. In May, the company’s stock price surged by 158% after adding Bitcoin to its portfolio.
Metaplanet’s commitment to Bitcoin suggests that it will continue to bolster its BTC holdings. Despite its smaller capital and profit turnover, the company’s adoption of the Bitcoin strategy underscores the potential for other firms worldwide to follow suit, regardless of geographical restrictions.
As Bitcoin remains free from government control, Metaplanet’s acquisitions have contributed to maintaining the cryptocurrency’s price within the $53,717.38 to $67,188.32 range over the past month.
At the time of writing, Bitcoin (BTC) continues its downward trajectory, trading at around $63,300, increasing less than 1% in the last 24 hours.
Will Metaplanet halt its Bitcoin purchases? While the core ideology behind its Bitcoin accumulation remains undisclosed, indications point toward sustained growth in its BTC holdings as part of a long-term capital-building strategy.
