Metaplanet Boosts Bitcoin Holdings with $6.6 Million Purchase

Metaplanet, a Japanese investment firm, has expanded its Bitcoin portfolio by acquiring an additional 107.913 BTC for 1 billion yen, approximately $6.6 million USD. The purchase was made at an average price of 9,266,724 yen (around $61,932 USD) per Bitcoin, as announced in a press release on Tuesday.

With this latest acquisition, Metaplanet’s total Bitcoin holdings have reached 506.745 BTC. The company’s total investment in Bitcoin now amounts to 4.75 billion yen, or roughly $31.8 million USD, with an average purchase price of 9,373,557 yen ($62,712 USD) per Bitcoin.

According to data from BitcoinTreasuries.net, the firm’s Bitcoin assets have grown to $24 million, representing nearly 20% of its market capitalization of $125 million.

Strategic Pivot Towards Bitcoin

Metaplanet initiated its aggressive Bitcoin investment strategy in April 2024. Describing the move as a “strategic pivot.” The company’s leadership stated that investing in Bitcoin was “the most valuable thing we can do for our shareholders.”

This strategic shift initially yielded positive results, with Metaplanet’s stock price surging from ¥190 ($1.32 USD) before the announcement to a peak of ¥1,008 ($7.01 USD). The stock briefly soared to ¥3,000 ($20.95 USD) in late July but has since retreated. As of the latest data from Google Finance, the stock is trading at ¥1,008 ($7.01 USD).

Mirroring MicroStrategy’s Approach

Metaplanet’s investment strategy draws parallels with that of U.S.-based software firm MicroStrategy (MSTR). Renowned for its substantial Bitcoin holdings. When Metaplanet first announced its Bitcoin treasury strategy. It referred to itself as “Asia’s first MicroStrategy.”

Under the leadership of Bitcoin advocate Michael Saylor. MicroStrategy has accumulated approximately 252,220 BTC, valued at around $15.9 billion USD. This aggressive acquisition has made MicroStrategy one of the largest corporate holders of Bitcoin. Owning more than 1% of the total Bitcoin supply.

Aligning with a Broader Corporate Trend

Metaplanet’s increased investment in Bitcoin aligns with a growing trend of companies integrating cryptocurrency into their long-term investment strategies. Beyond MicroStrategy, other major corporations have made significant moves in the crypto space.

In 2021, Tesla made headlines by investing $1.5 billion USD in Bitcoin. Although it later sold a portion of its holdings to diversify its portfolio. Similarly, Square (now known as Block Inc.) incorporated Bitcoin into its investment strategy, purchasing $50 million USD worth of BTC in 2020 and an additional $170 million USD in 2021. Additionally, PayPal has entered the cryptocurrency market by allowing users to buy, hold, and sell digital assets, reflecting increased corporate confidence in cryptocurrencies.

Metaplanet’s continued investment in Bitcoin underscores the growing acceptance of cryptocurrency as a viable asset class among institutional investors. By expanding its Bitcoin holdings, the company aims to enhance shareholder value and position itself strategically within the evolving financial landscape.