Key Points
- Metaplanet has increased its Bitcoin holdings by purchasing an additional $3.4M worth of BTC.
- The company’s total Bitcoin holdings have now reached approximately 303 BTC, valued at $18 million.
Tokyo-listed Metaplanet has further invested in Bitcoin (BTC).
The company recently purchased an additional $3.4 million worth of BTC at an average price of $59,200, as announced by Metaplanet CEO Simon Gerovich on X.
Metaplanet’s BTC Investment Strategy
This acquisition follows the Japanese company’s plans to secure a ¥1 billion loan (equivalent to $6.8 million) to entirely buy Bitcoin.
With the latest purchase, Metaplanet’s total Bitcoin holdings have surged to approximately 303 BTC, currently valued at $18 million.
These holdings were accumulated at an average price of $65,800 per Bitcoin, indicating that the company is at a 10% loss with the current BTC price at $59,300.
Metaplanet also plans to raise around $70 million through a stock rights offering, with about $58 million of these funds designated for further Bitcoin investments.
Over the past few months, Metaplanet’s Bitcoin acquisition spree has been ongoing.
Earlier in July, the company purchased 42.47 Bitcoins, valued at $2.42 million, followed by another acquisition of 21.88 BTC, worth around $1.2 million, in mid-July.
It’s noteworthy that bitcoin verification solution leader Hoseki verifies all the company’s BTC holdings in real-time, ensuring that Metaplanet’s actual Bitcoin reserves are publicly visible.
Reasons for the Buying Spree
Metaplanet’s buying spree is similar to that of MicroStrategy, the largest corporate Bitcoin holder.
Gerovich has openly discussed the challenges Metaplanet faced in the past, acknowledging that the company had started showing characteristics of a “zombie company,” barely able to cover their operating costs and service their debts.
This realization led Gerovich to adopt a more aggressive financial strategy, which includes Bitcoin acquisition.
Japan’s economic landscape, especially the depreciating yen and the country’s high government debt, has further influenced Metaplanet’s strategy.
With Japan’s public debt projected to reach $11.224 trillion by 2029, Metaplanet views Bitcoin not just as an investment but as a crucial hedge against traditional financial risks.
‘Buy the Dip’ Strategy
The latest shopping comes at a time when the broader cryptocurrency market has been experiencing a downfall since August 11.
Bitcoin is currently up by over 6% in the last seven days, with a 25% rise in its trading volume, currently standing at $35 billion.
However, BTC is still down by 19% from its all-time high of $73,750, achieved in March.
Meanwhile, MicroStrategy is also using the ongoing dip to acquire the largest cryptocurrency.
In June, the firm purchased 11,931 BTC at an average price of 65,800.
