Metaplanet’s Bitcoin Acquisition Spikes Stock by 15%

Key Points

• Metaplanet has purchased an additional 106 Bitcoin, bringing its total holdings to over 855 BTC.
• The company’s aggressive Bitcoin buying strategy has led to a 15% increase in its stock value.

Metaplanet, a firm listed in Tokyo, has once again made headlines in the cryptocurrency world with its ongoing Bitcoin investments. The company announced on Tuesday that it had bought an additional 106 Bitcoin for 1 billion Japanese Yen, equivalent to approximately $6.68 million.

This latest acquisition brings Metaplanet’s total Bitcoin holdings to more than 855 BTC, valued at approximately $56 million.

Metaplanet’s Bitcoin Acquisition Strategy

Metaplanet has been actively acquiring Bitcoin this October, with the latest purchase marking its fourth this month. The company announced its first and second purchases on October 1 and 7, respectively, before disclosing its third purchase on October 10.

However, Metaplanet’s purchases are not solely about increasing its Bitcoin reserves. The company’s strategy seems to be more focused on increasing its yield and driving growth. According to analysts like Peter Chung, Head of Research at Presto Labs, Metaplanet doesn’t just buy Bitcoin. It also sells put options alongside to generate additional yield.

Despite the Bitcoin market price sitting at $65,700, Metaplanet has managed to secure its BTC holdings at an average price of $62,200 per coin. The company’s persistent purchases have brought it very close to its goal of amassing at least 1,000 BTC, a target previously disclosed by Simon Gerovich, the company’s CEO. Currently, the firm is only 145 BTC away from reaching this milestone.

Gerovich has also suggested that Metaplanet has no immediate plans to sell off its Bitcoin holdings, indicating that the company is more interested in holding the digital asset for the long term.

Impact on Metaplanet’s Market Value

Metaplanet’s aggressive Bitcoin buying strategy has significantly impacted the company. It now ranks as the 17th largest public company holder of Bitcoin, according to data from Bitcoin Treasuries.

If Metaplanet continues its BTC acquisitions at the current pace, it could surpass Hong Kong-based Meitu, which currently holds 940 BTC, by the end of October. This would make it the largest Bitcoin holder among Asian public companies.

Investors seem to be responding positively to the company’s strategy. The latest purchase immediately sparked a 15% jump in the company’s stock, rising from 955 JPY to 1,105 JPY.