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Metaplanet Boosts Bitcoin Holdings, Stock Rallies After Third Purchase

Highlights:

  • Metaplanet acquired 23.25 BTC, raising its total Bitcoin holdings to 141.07 BTC.
  • The company’s stock rallied 10.8% on the Tokyo Stock Exchange following the Bitcoin purchase announcement.
  • Metaplanet aims to hedge against Japan’s debt burden and yen depreciation with its Bitcoin investment strategy.

Shares in Metaplanet JP surged on Tuesday after the firm disclosed its latest Bitcoin purchase. The company acquired 23.25 BTC, valued at approximately $1.59 million, marking its third purchase in the past seven weeks. This acquisition brings Metaplanet’s total Bitcoin holdings to 141.07 BTC, worth around $9.6 million at an average price of $65,365 per coin.

Steady Bitcoin Accumulation

The Japanese firm’s latest purchase received a positive response from investors. According to Google Finance, Metaplanet’s stock rallied 10.8% to reach $0.59 (92 Japanese yen) before settling at $0.57 (89 Japanese yen) on the Tokyo Stock Exchange by midday on June 11. The company’s stock has increased nearly fivefold since unveiling its Bitcoin investment strategy on April 9, 2024.

According to Bitcoin Treasuries, Metaplanet’s Bitcoin acquisition strategy began on April 23 with the purchase of 97.85 BTC, followed by an additional 19.87 BTC on May 10. The firm is now the 30th largest corporate holder of Bitcoin globally.

Source: Bitcoin Treasuries

Comparisons with MicroStrategy

On May 13, Metaplanet iterated that it plans to adopt an “entire range of capital market instruments” to enhance its Bitcoin reserves. This strategy mirrors that of MicroStrategy, the largest corporate Bitcoin holder, which owns 214,400 BTC, accounting for approximately 1.02% of the total Bitcoin supply.

Despite these efforts, Metaplanet’s holdings remain modest compared to MicroStrategy’s massive reserves. Currently, Metaplanet is exclusively listed on the Tokyo Stock Exchange, limiting access for U.S. investors. Major corporate investors in Bitcoin, including MicroStrategy, have seen significant profits from their investments.

Economic Context and Future Plans

According to data from Saylortracker, MicroStrategy’s Bitcoin position is valued at over $14.56 billion at current market prices of around $67,750 per coin. This reflects an unrealized profit of nearly $6.9 billion. Additionally, it shows a 91% yield-to-date since the investment strategy was initiated under Michael Saylor in 2020.

Metaplanet’s strategy aims to hedge against Japan’s worsening debt burden and the depreciating Japanese yen. The country’s debt-to-GDP ratio stands at 226%, the highest among developed nations. Since January 2021, the yen has depreciated nearly 35% against the U.S. dollar, while Bitcoin has surged almost 200% against the yen over the past year.

As of press time, Bitcoin is trading at $67,760, down 2% in the past 24 hours. BTC shows a decline of 2% in the weekly chart despite the surge of more than 10% on the monthly chart. The market capitalization and the trading volume stand at $1.33 trillion and $29 billion, respectively.

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