Key Points
- Metaplanet has reported a $28 million increase in its Bitcoin holdings, doubling its market valuation since the start of the year.
- The company, often dubbed the “Asian MicroStrategy”, has been strategically accumulating Bitcoin since mid-May.
Metaplanet, frequently compared to MicroStrategy in Asia, has recently disclosed a $28 million boost in its Bitcoin holdings. This substantial increase has led the firm’s market valuation to double since the beginning of the year.
Bitcoin Accumulation Strategy of Metaplanet
Starting in mid-May of this year, Metaplanet initiated its Bitcoin accumulation plan, with the goal of making Bitcoin its primary treasury asset. The initial investment goal was set at 1 billion yen, approximating to $6.8 million. To support this strategy, the firm secured a loan of 1 billion yen.
During this period, Japan, Metaplanet’s home country, was experiencing several economic issues, including the devaluation of the Yen. The company’s investment in Bitcoin was a direct response to these persistent economic pressures.
Metaplanet began by acquiring small amounts of Bitcoin, totalling 117.7 BTC or approximately $7.2 million. The company steadily increased its Bitcoin holdings, similar to the approach of Semler Scientific. By the end of August, Metaplanet’s total Bitcoin holdings reached 360.368 BTC, after buying an additional 57.273 BTC.
Metaplanet’s Bitcoin Holdings and Benefits
After purchasing 156 BTC valued at $1.6 billion Japanese Yen in October, Metaplanet became the largest corporate holder of Bitcoin in Asia. By mid-November, according to its Q3 financial report, the company increased its Bitcoin holdings from 492.82 BTC to 1,018.17 BTC, with a total worth of $64 million.
The company’s Bitcoin acquisitions have been beneficial, especially considering Bitcoin’s current high trading levels. Metaplanet’s stock has risen by more than 105% this year, in line with the increase in Bitcoin’s value.
Simon Gerovich, Metaplanet’s CEO, confirmed a 500% increase in the company’s stock within six months. He also noted a valuation gain of JPY 4.27 billion, or $28 million, on the company’s Bitcoin holdings. The company’s strategy of Bitcoin accumulation does not seem to be slowing down.
Metaplanet also generates yield by selling out-of-the-money Bitcoin options, providing more opportunities to enhance its return strategy. In its Q3 Financial data, it reported a BTC yield of an impressive 155% for the last quarter.
