Key Points
- Metaplanet, Asia’s largest corporate Bitcoin holder, has purchased an additional 124 BTC following MicroStrategy’s acquisition of 51,780 BTC.
- The company’s current Bitcoin holding is valued at over $105 million, contributing to a significant increase in its stock price.
Metaplanet, the largest corporate holder of Bitcoin in Asia, recently added 124 Bitcoin to its portfolio. This acquisition followed shortly after business intelligence and software firm MicroStrategy Inc announced its purchase of 51,780 BTC. The purchase by Metaplanet set the company back by 1.75 billion Japanese Yen, which is approximately $11.3 million.
The average Bitcoin price for each coin stands at 14,099,600 yen per BTC. The average acquisition cost for all the Bitcoin in Metaplanet’s possession is 9,955,874 yen per BTC.
Metaplanet’s Bitcoin Investment Strategy
With the recent acquisition, Metaplanet now holds close to 1,150 BTC. Given the current trading price of Bitcoin at $92,007.70, the company’s Bitcoin stash is valued at over $105 million. This has also led to an increase in Metaplanet’s stock price by approximately 15%.
The company’s stock price has the potential to rally further to 3,000 JPY, which would result in a 30% increase. Metaplanet’s Bitcoin Yield has increased by 186.9% Quarter-to-date (QTD).
On Monday, Metaplanet hinted at pursuing a debt sale to increase its Bitcoin holding. The debt sale involves one-year ordinary bonds with a guarantee totaling 1.75 billion yen, equivalent to $11.3 million. The firm planned an annual interest rate of 0.36% for the proposed bond sale.
MicroStrategy’s Influence on Corporate Bitcoin Acquisition
MicroStrategy has consistently conducted a series of MSTR stock buybacks to boost its BTC holdings. This year alone, BTC in its portfolio has recorded a massive 400% rally. Metaplanet has followed this approach, which has proven profitable. For instance, the firm recently reported that its Bitcoin holding has pulled in a profit of more than $28 million.
As the company’s balance sheet improves significantly, so do its stakeholders, who are registering massive gains. Metaplanet’s Bitcoin acquisition strategist Dylan Leclair acknowledged the paradigm shift in corporate strategies, citing Bitcoin as the new “stock buyback” for Wall Street.
MicroStrategy’s open access to its Bitcoin acquisition playbook has triggered a snowball effect across corporate institutions. Semler Scientific and Marathon Digital also maintain an active Bitcoin purchase campaign. Even technology giant Microsoft Corporation is gearing up for its stakeholders’ vote in December on putting Bitcoin on its balance sheet.
The company’s board members have recommended voting against the move. However, the stakeholders’ vote will determine the company’s next step.
Bitcoin may register a further surge and reach the projected level of $100,000 before the year ends. The current price level, market cap, and trading volume set the stage for this potential price action.
