TLDR
- Metaplanet, a Japanese investment firm, purchased 21.88 Bitcoin worth $1.2 million
- The company’s total Bitcoin holdings now stand at 225.6 BTC, valued at $14.6 million
- Metaplanet’s share price spiked 22% following the announcement
- The firm is being dubbed “Asia’s MicroStrategy” due to its Bitcoin accumulation strategy
- Metaplanet cites concerns over Japan’s debt and the depreciating yen as reasons for its Bitcoin strategy
Japanese investment firm Metaplanet has made another Bitcoin purchase, acquiring 21.88 BTC worth approximately $1.2 million (200 million Japanese yen).
This latest acquisition, announced on July 16, brings the company’s total Bitcoin holdings to 225.6 BTC, valued at $14.6 million based on current market prices.
Metaplanet’s aggressive Bitcoin accumulation strategy has earned it the nickname “Asia’s MicroStrategy,” drawing comparisons to the American business intelligence firm known for its substantial Bitcoin investments.
The Japanese company has been steadily increasing its Bitcoin holdings since April 2024, making this its sixth purchase in the last four months.
The announcement of the latest Bitcoin acquisition had an immediate impact on Metaplanet’s stock price. Shares surged 25.8% to $0.74 (117 yen) in the opening two and a half hours of trading on the Tokyo Stock Exchange on July 16. This sharp increase reflects growing investor confidence in the company’s Bitcoin-centric strategy.
Metaplanet’s decision to adopt Bitcoin as its principal treasury reserve asset is driven by concerns over Japan’s economic challenges.
The company cites the country’s worsening debt burden and the rapid depreciation of the Japanese yen as key factors influencing its strategy. Over the past 12 months, Bitcoin has appreciated by more than 145% against the yen, while the Japanese currency has fallen nearly 54% against the U.S. dollar since January 2021.
The firm’s average Bitcoin purchase price stands at approximately $62,890, indicating that Metaplanet is currently up about 2.8% on its Bitcoin holdings. This strategic approach to entry points demonstrates the company’s careful consideration of market volatility in its acquisition strategy.
Metaplanet’s Bitcoin holdings now place it as the world’s 21st-largest corporate holder of the cryptocurrency.
While this puts the company in an elite group of Bitcoin-holding corporations, it still trails far behind industry leader MicroStrategy, which holds 226,331 BTC worth around $14.6 billion.
The company’s Bitcoin strategy extends beyond mere accumulation. In May, Metaplanet announced its intention to use “the entire range of capital market instruments” to bolster its Bitcoin reserves, signaling a comprehensive approach to integrating cryptocurrency into its financial operations.
The timing of Metaplanet’s latest purchase coincides with a recent rally in Bitcoin’s price, which has seen the cryptocurrency approach the $65,000 mark.
Bitcoin is currently trading at around $64,640, marking a 13.6% increase over the past week.
