Though Metaplanet has a smaller portion of bitcoin than MicroStrategy, it is currently the 30th largest corporate holder.
The Japanese corporation Metaplanet revealed on June 11 that it has acquired 23.351 Bitcoin for roughly $1.59 million, increasing its total amount of Bitcoin holdings to 141.07, or $9.6 million.
Metaplanet’s pro-Bitcoin action resulted in an amazing 10.8% price increase for company shares that are traded openly.
The Tokyo-based business, also known as Asia’s MicroStrategy, revealed that, as a result of the most recent buying round, its bitcoin assets were acquired for an average price of 10.27 million Yen, or roughly $65,365.
This most recent purchase comes after two earlier ones that were made on April 23 and May 10 for roughly 97.85 and 19.87 BTC, respectively. Despite having a much smaller holding of Bitcoin than industry titans such as MicroStrategy, Metaplanet is currently the 30th largest corporate Bitcoin holder globally.
The news of the new Bitcoin acquisition caused Metaplanet’s stock to rise by almost 10%. Furthermore, Metaplanet’s stock has increased by almost 368% from a low of 19 Yen to the current 89 Yen after the company unveiled its bitcoin investment strategy on April 9. These price increases are evidence that investors approve of the shift to cryptocurrencies.
Metaplanet outlined a number of the considerations that went into its choice when it announced its BTC approach. Bitcoin is a solid hedge against Japan’s quickly increasing foreign debt load. At 261 in the beginning of 2024, Japan has the highest debt-to-GDP ratio of any developed nation.
Furthermore, bitcoin can be a very effective hedge against the Yen’s sharp decline in value. The Yen has lost almost 35% of its value in relation to the USD since January 2021, yet Bitcoin has gained more than 200% in value versus the Yen in only the last year. Therefore, Metaplanet wishes to leverage Bitcoin’s potential and lessen its reliance on the declining value of the yen.
Businesses Benefit as Bitcoin Rises
With the most popular cryptocurrency hovering just above $67K, Metaplanet’s exposure to bitcoin has an unrealized profit of roughly 2.5%. While BTC is trading a few thousand below its all-time high of $73,000, these profits are still being made.
Metaplanet promises to keep growing its hoard of bitcoin. Metaplanet announced plans to deploy “a wide range of capital markets instruments” on May 13, increasing its Bitcoin reserves, following in the footsteps of MicroStrategy.
Corporate investors, like MicroStrategy, are making enormous profits, much like Metaplanet. According to Saylor Tracker data, the company he co-founded had an unrealized profit on its Bitcoin exposure of around $6.5 billion.
There is more to this trend than just Metaplanet and MicroStrategy. The stock price of DeFi Technologies, a Canadian company, increased by 11% just yesterday after it added 110 BTC to its treasury.
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