Key Points
- Tokyo-based Metaplanet acquires another 20.195 Bitcoin (BTC) following board approval.
- Metaplanet’s Bitcoin acquisition strategy intensifies amid Japan’s economic challenges.
Tokyo-based investment and consulting firm, Metaplanet, has added 20.195 Bitcoin (BTC) to its holdings following approval from its board of directors.
The company publicized this recent acquisition on their X account on Monday, demonstrating the increasing interest of institutional investors in the growing cryptocurrency sector.
Bitcoin as Primary Treasury Reserve Asset
Metaplanet’s frequent Bitcoin purchases this year indicate its strong interest in the leading digital currency. In May, the firm bought Bitcoin worth ¥200 million, equivalent to $1.25 million. This was for 19.87 BTC at an average price of 10,065,548 yen per Bitcoin, following an initial purchase of ¥1 Billion worth of BTC, valued approximately at $6.25 million.
Metaplanet’s active Bitcoin accumulation strategy has recently heightened, likely due to Japan’s economic strain. The ongoing economic challenges in Japan have led to the depreciation of the Japanese yen and escalated the country’s debt, pushing the consulting firm to strategize.
As a result, Metaplanet decided to adopt Bitcoin as its primary treasury reserve asset, joining a growing list of institutions seeking alternatives to traditional fiat currencies amidst economic uncertainties.
The Japanese firm announced a week ago its plan to acquire additional Bitcoin worth 1 billion yen ($6.26 million). Metaplanet stated that the funds for the BTC purchase would be raised through an upcoming round of bond issuance with an annual interest rate of 0.5% and a maturation date of June 25, 2025.
Metaplanet’s Bitcoin Acquisition Plan
The firm shared a screenshot on X showing that the latest acquisition is only part of the total 1 billion yen Bitcoin that Metaplanet plans to purchase this season. The recent acquisition was worth 200 million yen, approximately $1.24 million, with the average cost of each BTC at purchase being $61,527.
Currently, Metaplanet’s Bitcoin holdings consist of 161.26 Bitcoin units, each purchased at an average price of $63,580, totalling a value of $10.25 million.
In comparison, Metaplanet’s Bitcoin holding is significantly less than that of MicroStrategy Inc. The latter made a similar decision to Metaplanet in August 2020 when the COVID-19 pandemic hit. This business intelligence software firm owns one of the largest Bitcoin portfolios and continues to acquire more coins. Recently, MicroStrategy announced the acquisition of an additional 11,931 BTC for $786 million.
At present, MicroStrategy holds a total of 226,331 Bitcoins, worth nearly $15 billion at a current market price of $63,342.11. It’s worth noting that many institutional investors are venturing into the crypto world through Bitcoin ETFs.
