Metaplanet, a Japanese investment powerhouse, recently made waves by purchasing 107 Bitcoin, causing its stock to rise sharply by 15.7% on 15 October. This strategic move marks a pivotal moment for the company as it enhances its cryptocurrency portfolio.
In a bold move, Metaplanet’s latest acquisition of 107 Bitcoin bolsters its total holdings to 855.5 BTC, valued at over $56.1 million. The firm invested approximately 1 billion yen (around $6.7 million) to secure Bitcoin at an average price of $62,520, significantly below the market value of $66,200.
Metaplanet has demonstrated a calculated approach, securing Bitcoin at strategic price points. This latest purchase is part of an ongoing spree that has seen its Bitcoin reserves more than double this October.
Following the Bitcoin purchase, Metaplanet’s shares (TYO: 3350) soared to 1,105 yen ($7.38), marking a 15.7% increase from the previous day’s close. Further analysis shows that since adopting its Bitcoin strategy in April 2024, the company’s stock has skyrocketed by an astounding 480%.
This purchase is a testament to the significant impact of Bitcoin on Metaplanet’s market valuation, showcasing investor confidence in its ambitious cryptocurrency strategy.
October has been a noteworthy month for Metaplanet, with the company acquiring BTC on three other occasions, including purchase of 109 BTC on 11 October and 108.8 BTC on 7 October.
Earlier, the firm procured 132 BTC in two separate transactions at the start of the month, as revealed by Bitcoin Treasuries.
Considering the cumulative investments, Metaplanet has invested around $53.2 million to bolster its Bitcoin portfolio, representing a 5.4% profit at this time.
Metaplanet’s CEO, Simon Gerovich, drew inspiration from MicroStrategy’s renowned Bitcoin acquisition strategy. Under Michael Saylor, MicroStrategy accumulated more than 252,000 Bitcoin, worth approximately $16.45 billion.
Following a similar path, Metaplanet plans to leverage various capital market instruments, including a $6.8 million loan to further augment its Bitcoin reserves.
Metaplanet has not only concentrated on Bitcoin acquisitions but also announced a collaboration with SBI Group for Bitcoin trading and custody solutions in September 2024.
Such partnerships underscore the company’s commitment to positioning itself at the forefront of the Bitcoin investment sphere.
This collaboration is expected to unlock new avenues for Bitcoin utilisation within financial trading.
Bitcoin itself has been on a significant upswing, climbing over 9% to $65,500 between Metaplanet’s latest acquisitions on 11 and 15 October, according to CoinGecko data.
The rise in Bitcoin’s price has had a reciprocal effect, boosting Metaplanet’s stock as well as increasing the value of its holdings.
Metaplanet currently holds the 23rd largest Bitcoin reserve among public companies, according to Bitcoin Treasuries data. This demonstrates its growing influence in the cryptocurrency market.
By prioritising Bitcoin as its primary reserve asset, the company has significantly altered its investment strategy to adapt to the evolving digital landscape.
Metaplanet’s astute Bitcoin acquisitions have not only spurred a substantial rise in its stock but also cemented its status as a forward-thinking investor in the cryptocurrency realm. By aligning its strategy with market leaders like MicroStrategy and fostering key partnerships, Metaplanet continues to shape its path as a formidable player in digital finance.
