Key Points
- Metaplanet’s aggressive Bitcoin acquisition strategy has resulted in a 10% stock surge.
- The Japanese firm plans to continue expanding its Bitcoin reserves to navigate Japan’s economic situation.
Metaplanet, a Japanese company, has been aggressively acquiring Bitcoin, a strategy that resembles that of MicroStrategy. The firm’s latest purchase marks its third in less than two months and has resulted in a notable increase in its stock value.
This bold approach towards Bitcoin has resonated with investors, leading to a double-digit rise in Metaplanet’s share price.
Metaplanet’s Bitcoin Strategy
On June 11th, Metaplanet announced its most recent Bitcoin acquisition, purchasing 23.25 Bitcoin for approximately $1.59 million. This latest investment brings the firm’s total Bitcoin holdings to 141.07, with a total investment of around $9.6 million.
The company’s average Bitcoin purchase price stands at $65,365 per Bitcoin. Given the current prices of $68,313, Metaplanet is in a 4.5% gaining position regarding its investments to date.
The news of the latest acquisition was met with a positive response from investors, pushing Metaplanet’s stock price up 10.8% to $0.59. Despite a slight drop to $0.57 on the Tokyo Stock Exchange, the initial surge indicates the market’s confidence in Metaplanet’s Bitcoin strategy.
Metaplanet’s venture into the crypto world isn’t new. Since the announcement of its Bitcoin investment plan in April 2024, the company’s stock has increased nearly fivefold. With its first purchase of 97.85 Bitcoin in April, followed by a second purchase of 19.87 Bitcoin in May, Metaplanet ranks as the 30th largest corporate Bitcoin holder worldwide.
Expansion of Bitcoin Reserves
Metaplanet seems to be following MicroStrategy’s playbook, the current leader in corporate Bitcoin ownership. The firm has indicated plans to use a variety of capital market instruments to further expand its Bitcoin reserves. This strategy is aimed at navigating the challenging economic situation in Japan, characterized by high national debt and a weakening Japanese Yen.
The severity of Japan’s debt burden, reflected in its 261% debt-to-GDP ratio, the highest among developed countries, is a significant concern. Additionally, the Yen has depreciated by almost 35% against the US dollar since January 2021, while Bitcoin has grown 200% against the Yen in the past year. These factors explain Metaplanet’s keen interest in continuing its Bitcoin acquisitions.
While Metaplanet’s Bitcoin holdings are gaining attention, they are still far from MicroStrategy’s massive 214,400 Bitcoin.
Currently, Metaplanet is only listed on the Tokyo Stock Exchange, which limits access for US investors. However, the company is reportedly working on expanding its reach.
