Metaplanet Buys more Bitcoin

As an analyst with extensive experience in the cryptocurrency market, I find Metaplanet’s aggressive Bitcoin acquisition strategy both intriguing and promising. Having closely followed MicroStrategy’s Bitcoin journey, it’s refreshing to see another company emulating this trend-setting approach.


As a researcher, I’m sharing the following information about Metaplanet: They plan to allocate 29,000 SAR units to EVO FUND, an investment firm based in the Cayman Islands. Each unit grants the opportunity to purchase 100 common shares at approximately 614 yen each. If fully subscribed by December 16, 2024, this could potentially raise around 9.5 billion yen or roughly $62 million. However, it’s important to note that this move is subject to approval under Japan’s Financial Instruments and Exchange Act.

Aggressive Bitcoin Acquisition

Starting from April 2024, Metaplanet has been amassing Bitcoin, and as of now, they have gathered more than 1,000 Bitcoins. This investment, worth over $62 million, was made at an average price of about $61,663 per Bitcoin. Their latest acquisition of 156.783 Bitcoins for approximately $66,575 each has increased their total holdings to over 1,018 Bitcoins, which are now valued at around $67.1 million.

Stock Performance and Market Impact

Metaplanet’s bold approach towards Bitcoin has significantly boosted its share prices. When they announced their planned $62 million investment in Bitcoin, their stock skyrocketed by 6.5%, reaching around 3,000 JPY. Over the last month alone, the company’s shares have experienced a tremendous increase of 102%. This outperforms Bitcoin’s own growth of 36% over the same duration.

Comparison with MicroStrategy

Metaplanet’s method mirrors that of MicroStrategy, a company headed by CEO Michael Saylor, which has substantially invested in Bitcoin as part of its treasury reserve strategy. With more than 150,000 Bitcoins in its possession, MicroStrategy is recognized as one of the largest corporate Bitcoin holders globally. In the same vein, Metaplanet aspires to become a prominent Bitcoin-holding company in Asia, earning the nickname “Asia’s MicroStrategy.

As a crypto investor, I’ve noticed that Metaplanet’s decision to invest in Bitcoin aligns with a larger movement of institutions viewing it as a strategic asset. Companies such as Tesla and Block Inc. have followed suit by incorporating Bitcoin into their financial portfolios, indicating a growing corporate belief in its long-term worth. Michael Saylor elucidates the rationale behind this strategy in the excerpt below.

Metaplanet’s ongoing accumulation of Bitcoin underscores the growing trend of incorporating Bitcoin into corporate investment portfolios. This dedication to Bitcoin doesn’t just boost shareholder value, but also fuels the broader recognition and credibility of digital currencies within the financial industry.

 

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2024-11-29 16:08