Metaplanet Expands Bitcoin Strategy with $6.5M Purchase

Metaplanet Inc., the Tokyo-listed firm known for its aggressive approach to Bitcoin (BTC), has once again made waves with its latest purchase. On Friday, the company announced it had acquired an additional 108.999 Bitcoin for ¥1 billion (US$6.5 million), pushing its total Bitcoin holdings to an impressive 748.502 BTC.

A Strategic Bitcoin Bet

Metaplanet’s Bitcoin acquisition strategy sets it apart from many other companies. Rather than simply purchasing Bitcoin on the spot market, the firm combines its buys with selling put options. This sophisticated approach allows Metaplanet to generate extra yield while safeguarding against price dips.

“Metaplanet’s strategy allows them to bottom-fish if the BTC price declines,” explains Peter Chung, Head of Research at Presto Labs. This strategic maneuver demonstrates a level of financial innovation that is uncommon in the corporate world, even among companies with significant Bitcoin holdings.

Strengthening its Crypto Holdings

This latest acquisition comes after several purchases throughout the month, bringing Metaplanet’s total Bitcoin investment to ¥6.9 billion (US$46.8 million). With Bitcoin trading at around $60,420, the company’s 748.502 BTC now represents approximately $45.2 million in value.

Mirroring MicroStrategy’s Moves

Metaplanet’s focus on Bitcoin draws comparisons to MicroStrategy, the U.S.-based software company known for its large Bitcoin holdings. MicroStrategy was one of the first major firms to integrate Bitcoin as a core asset in its treasury, a move Metaplanet has mirrored. When the company first embarked on its Bitcoin journey in April 2024, it branded itself as “Asia’s answer to MicroStrategy.”

The firm’s leadership views Bitcoin investment as a long-term strategy. They believe it’s the best way to maximize value for shareholders, and the initial excitement from this approach caused Metaplanet’s stock to soar. From ¥190 (US$1.32), it skyrocketed to ¥1,008 (US$7.01), though it has since cooled down to ¥920 ($6.40).

Riding the Yen’s Strength

One element working in Metaplanet’s favor is the recent strength of the Japanese yen against the U.S. dollar. The company is leveraging this currency advantage to purchase Bitcoin at lower costs, boosting its holdings without inflating its expenditure.

Metaplanet’s Bitcoin acquisition strategy is more than just another corporate investment; it represents a shift in how companies are incorporating cryptocurrency into their financial plans. As firms like Metaplanet and MicroStrategy continue to increase their Bitcoin holdings, it signals a broader acceptance of crypto assets in the corporate world. With companies like Tesla and Block Inc. also playing major roles, the trend shows no signs of slowing down.