Japanese company Metaplanet has made a significant investment in Bitcoin, purchasing 21.88 Bitcoin worth $1.2 million (JPY 200 million) as the price of the cryptocurrency soared close to $65,000 per coin. This strategic move by Metaplanet has proven to be lucrative, as the firm now holds a total of 225.6 Bitcoin, valued at $14.6 million, according to their latest statement on July 16.
The company’s buying spree did not stop there, as they made another purchase earlier in the month, securing an additional 42.46 Bitcoin on July 7 for $2.5 million (400 million Japanese Yen). This aggressive investment strategy has paid off for Metaplanet, with Bitcoin’s price rising by 4.4% in the past 24 hours, pushing it closer to the $65,000 mark.
The surge in Bitcoin’s price has not only boosted the cryptocurrency’s market performance but has also driven Metaplanet’s share prices up by 12.90% to $0.70 (105 Japanese Yen) during the first hours of trading on the Tokyo Stock Exchange. Since unveiling its Bitcoin investment strategy on April 9, 2024, the firm’s stock price has skyrocketed nearly six-fold.
Despite the substantial gains in its stock price, Metaplanet has realized a modest 2.8% increase on its Bitcoin holdings due to its average purchase price of $62,890 per Bitcoin. Nevertheless, the company now ranks as the world’s 21st-largest corporate holder of Bitcoin, according to CoinMarketCap.
Metaplanet has earned the nickname “Asia’s MicroStrategy” for its approach, which mirrors that of MicroStrategy, the largest corporate Bitcoin holder globally. Similar to MicroStrategy’s strategy in 2020, Metaplanet announced on May 13 its intention to utilize a wide range of capital market instruments to further bolster its Bitcoin reserves.
This strategy aims to hedge against Japan’s growing debt burden and the depreciation of the Japanese yen, which has declined nearly 54% against the US dollar since January 2021. In contrast, Bitcoin has seen a remarkable 145% increase in value against the yen over the past year.
Bitcoin continues to trade strongly at $63,752, marking a notable 2.53% increase over the past week. Metaplanet’s proactive approach to Bitcoin investment underscores its confidence in the cryptocurrency’s long-term value amid global economic uncertainties. The company’s bold moves in the cryptocurrency market have positioned them as a key player in the industry, with potential for further growth and success.