Key Points
- Japanese company Metaplanet Inc has increased its Bitcoin holdings to boost its balance sheet and stock market performance.
- The company’s Bitcoin strategy, similar to MicroStrategy Inc, is in response to growing institutional demand for Bitcoin.
Metaplanet Inc, a Japanese firm that runs a hotel, has purchased additional Bitcoin units to bolster its balance sheet and stock market performance. On December 23, the firm announced the acquisition of an extra 619.7 Bitcoins, bringing its total holdings to approximately 1,761.98 BTC, valued at over ¥20 billion.
The company emphasized that its Bitcoin treasury operations have continually enhanced its stock market performance. Between July 1, 2024, and September 30, 2024, the firm’s Bitcoin yield was 41.7 percent, and from October 1, 2024, to December 23, 2024, it was 309.82 percent.
Metaplanet’s Bitcoin Strategy
As a result of this strategy, Metaplanet’s stock market has surged more than 20x year-to-date to trade at around ¥3,540. The Bitcoin-focused company’s valuation has risen to nearly ¥130 billion, despite not having a major product on the market.
Metaplanet has been leveraging the global capital market to strengthen its Bitcoin strategy, similar to MicroStrategy Inc. The OTC Markets Group Inc recently listed Metaplanet’s stock market under the ticker MTPLF, allowing the company to sell more of its shares globally to buy more Bitcoins.
Earlier this year, Metaplanet announced a 10-for-1 share consolidation to enhance its liquidity. This move is in response to the growing demand for Bitcoin, which has increased significantly since last month’s victory of Donald Trump and other pro-crypto leaders in the United States.
Institutional Demand for Bitcoin
According to Coinglass’ on-chain data analysis, the supply of Bitcoin on centralized exchanges has dropped by over 200K in the past two months, standing at about 2.24 million. Institutional investors, led by Metaplanet and MicroStrategy, have continued to buy Bitcoin, and US spot Bitcoin ETFs have also been a significant source of cash inflows.
Market data shows that US spot Bitcoin ETFs have amassed Bitcoins worth over $109 billion in less than a year, led by BlackRock’s IBIT. Meanwhile, despite a recent deal with the IMF for a $1.4 billion loan, El Salvador has stepped up its Bitcoin purchase program.
After falling below the psychological target of around $100K, the BTC price has been retesting a crucial support range between $93,806 and $97,041. From a technical analysis perspective, the flagship coin must bounce back above the support level of around $93k to avoid a potential selloff towards $70K.
Crypto analyst Ali Martinez predicts that the Bitcoin price is gearing up for a new bullish rebound beyond $168K.
